The market continued its trend from June with inventory levels continuing to drop and pricing increasing. Homes under $300,000 in most markets are moving fast. Buyer demand for these homes remains very strong despite the summer heat. Lower interest rates are keeping buyers interested for now.
However, getting buyers a home is a difficult process and buyer fatigue is rampant. More than a few buyers have decided to go back into renting due to losing out on multiple properties. They might come to regret that decision in the future.
So the Phoenix Real Estate Market remains strong but as pricing continues to increase concerns for the future and pricing affordability are rising.
Consumers who are price-sensitive or rate-sensitive need to act sooner vs. later. There is no evidence at this time that pricing will plateau. There is simply not enough supply.
For investors, those who continue to buy despite higher valuations should be able to lock in long term tenants due to the housing shortage. I am still recommending single-family properties because of rental demand and price appreciation.
Here is the full report.
Until next month, stay cool!