Did you know that a balanced market in Arizona equals 5.5 months of supply? Currently, our available inventory stands at just about 1. Which is far better than many of the 15 days of supply we saw over the past year! Luckily, we’re finally seeing an influx of inventory; and it feels really good after such a tumultuous time in our housing market. In fact, in Scottsdale (homes over $1,000,000) active listing inventory was 506 homes last month, which was an increase of 103 units from the month before; and it’s only going up from here.
If we take a look at the total number of Valley wide closings for May, there were 9,057. This includes all dwelling types and represents a decrease of 466 closings from the previous month. So, while more inventory is hitting the market each day, the rise in interest rates is slowing down the demand from buyers. But what does this mean exactly? There are actually positives to this current rate of supply and demand. Let us explain.
Prices are remaining steady. While pricing adjustments are being made, closing homes are beginning to show similar purchase prices to the homes that have closed over the previous few months. That means that these pricing adjustments are being made to homes that came on the market above market rate. So, homes that are priced well and accurately for their condition are going to sell quickly. This also has a ton to do with the location of these homes as well.
Buyers are no longer having to sign away their contingencies and are now able to complete full inspections. This is because buyers have more options in our current market. Buying power might be decreased due to higher interest rates, but buyers are taking back their available options and doing what is best for their situation.
What does this all mean? If the market continues to follow the trajectory we’re currently seeing, we can expect to see a more balanced, “normal” market by the time we reach the month of September 2022.
As one of the most trusted real estate teams in Arizona, The Kimberly Lowe Group takes pride in our passion and dedication to making our clients our number one priority, always. Whether you’re looking for a new home, hoping to sell yours, or just want some more information about the markets we specialize in, we’re here to help. Email or call Kim Lowe at 480-363-1622 and remember to follow us (@thekimberlylowegroup) on Instagram and Facebook for information on luxury homes for sale all over the Valley! Check back to our blog for even more market updates, insights, tricks, tips, and more.