New Year, New Market Stats! Where were we and where are we headed in the Phoenix Real Estate Market for 2023??? Data provided by The Cromford Report.
The Phoenix Metropolitan Area has had an insane 2020-2022. Halfway through 2022 our market shifted. Inventory increased and home sales prices decreased. Overall the market depreciated 13% in 2022. But we were still 10% higher at the end of 2022 than we were at the end of 2021 so it isn’t all bad news. The best part is if you bought your house 2 years ago or longer you will have equity and can sell your house for more money than you bought it for. You would have 26% more equity than you bought it for in 2020 and 71% more equity if you bought it 5 years ago. See slide below.
We were in a “buyers market” for about 4 weeks! We have already moved out of that and are in a balanced market or a slight sellers market again. Some outlying areas such as Maricopa, Buckeye and Queen Creek are still in a buyers market but that is mainly because there are a lot of New Builds still being built which is adding to the inventory.
The next 1 -2 months will tell us if our market will continue to head in a direction of recovery and a sellers market. The interest rates will have a huge impact on which way our numbers trend. For now, if we stay on track our market could rebound in 2 months. Interest rates are not expected to be increased in the next 6 months. Inventory will increase with the new year but so does our demand. The appreciation will continue to decrease for the next 5-7 months because that is how long the market takes to react once the numbers are introduced. The biggest take away is this…. Buyers, if you are on the fence you will want to make your move in the next 6 months. If you wait, it could be too late and prices will rise again.
