US Economy & Greater Phoenix 

Welcome back to LUXE BLOG. This week brings a whirlwind of updates regarding Greater Phoenix real estate as the broader economy, local market trends, and future predictions intersect. With this array of data in hand, we’re ready to delve into the market’s current condition, forecast its trajectory, and provide vital insights for buyers and sellers. Keep reading for the latest real estate breakdown by us here at WLH.

Economic Indicators & Market Trends

The real estate market doesn’t exist in a vacuum; it is significantly affected by the overall health of the broader economy. This week, we’ve seen a wealth of new economic data being released that carries potential implications for Phoenix real estate.

• Crucial economic indicators released this week include the CPI data, PPI data, and the consumer sentiment index.
• Monitoring these indicators helps understand the potential impacts on the housing market.

Although the broader economy exhibits robust momentum, inflation concerns influence Federal Reserve policies. The latest reports suggest a continued inclination towards hiking interest rates, underlining the role of the broader economy in shaping real estate trends.

Also Read: Greater Phoenix Real Estate Market Statistics For July 2023

Interest Rates May Continue To Rise

The Fed’s Stance & Its Implication

The Federal Reserve’s stance on interest rates has significant implications for the real estate market. Current data indicates the Fed’s intention to continue with its policy of rate hikes.

• Recent reports suggest some Fed officials pushed for a June rate hike.
• The labor market’s strength and the low inflation rate influence the decision to hike the interest rate.
• While the final vote led to a steady interest rate, the dialogue indicates a preference for slowing down rate hikes to observe past effects.

The potential impact of these decisions on the Greater Phoenix real estate market remains to be seen, warranting close observation over the coming weeks.

Jobs Report & Housing Market Sentiments

The labor market directly impacts the housing market, and recent data portrays a nuanced picture.

• The economy added 209,000 jobs in June, an outcome stronger than anticipated.
• Despite the ongoing gains, the figure represents a cooling of the labor market with the total falling from the previous month.
• However, with the low unemployment rate, the Fed is unlikely to consider rate cuts.

These factors could influence the housing market, particularly in Phoenix, and they warrant careful monitoring as we move further into 2023.

Predicted Rally In The Housing Market

There’s talk of a potential rally in the housing market, with new home sales surging and home prices bouncing back.

• New home sales in the US are surging due to tight resale inventory.
• New construction is increasingly becoming the go-to choice for home buyers.
• In Phoenix, year-to-date new home sales for 2023 stand at 9,400, a significant increase compared to previous years.

Although the term “rally” may be an overstatement, the strength of new home sales is likely to continue, given the tight supply in Greater Phoenix.

Also Read: Shocking Projected Shifts In US City Populations By Year 2100

The Greater Phoenix Real Estate Market Is Considered Stable As of July 2023

The Influence Of Mortgage Rates

The state of mortgage rates significantly impacts the accessibility of homeownership for many people.

• Mortgage rates remain high, hovering in the 6 to 7 percent range.
• Strong economic data typically exerts upward pressure on rates.
• High rates can discourage potential buyers and limit the pool of prospective home buyers.

With these factors at play, home buyers and sellers in Greater Phoenix must stay informed about the shifting mortgage landscape.

Phoenix Market Update: The CMI

The Crawford Market Index (CMI) is a valuable tool for assessing the state of the Greater Phoenix real estate market. We get this info from CromfordReport.com.

• The current CMI on 7/10/23 stands at 163.1, indicating a seller’s market.
• However, compared to previous periods of strong seller markets, demand is lower and supply is limited.
• Several cities are showing improvement for sellers, while others are seeing conditions improve for buyers.

Given this context, it’s crucial to note that the real estate scenario can vary significantly between different parts of Greater Phoenix. There are over 25 municipalities in ‘The Valley’. While there are indications of market weakness, whether these signs herald a sustained downturn or merely reflect a typical summer slowdown remains to be seen. Whatever the future holds, we at Williams Luxury Homes remain dedicated to providing you with the latest and most accurate market insights.

Also Read: Going Over New U.S. Housing Market Data Released By Redfin