At WLH, we specialize in various real estate niches. We play the game daily, from investment properties and vacation rentals to primary residences and luxury condos. As part of our commitment to keeping you informed about the Arizona real estate market, we’re sharing the latest data and insights on the 2023 real estate market by Altos Research.
According to Mike Simonsen, president of Altos Research, the housing market is showing encouraging signs. Even as mortgage rates have stabilized at around 7%. The inventory of unsold single-family homes rose by 2% this week. This is a significant change from last year. Back then the increase was 6%.
One key insight from Simonsen’s analysis is that homebuyers may be more sensitive to rapid changes in mortgage rates than to absolute levels. When rates are stable, buyers adjust to what they can afford. However, abrupt changes can disrupt their calculations and decision-making process. This is an important factor to understand. As rates stabilize (high or low), people start adjusting their spending habits on other items. Another thing that happens as rates stabilize is individuals start budgeting differently. They trach their balances differently. Etc. Eventually, things begin to normalize.
Simonsen’s data also reveals that year-over-year comparisons are getting easier. According to him, we can expect to see inventory decline year over year, prices appreciate, and fewer price reductions compared to last year. If we’re lucky, we may see more home sales than last year by the fall.
There are approx. 459,000 single-family homes on the market across the country. This is up 1.9% from last week but still 10% fewer than at the end of the previous year.
The data suggests that we’ll finish 2023 with 10% fewer homes on the market than we started the year. This trend, where demand exceeds supply, is a good rule of thumb for home price increases another year in the future. That bodes well for home prices in 2024.
Williams Luxury Homes is a boutique team of Scottsdale real estate agents. Are you thinking of moving to Greater Phoenix? If so, let us start by saying it is a BIG valley. There is much to learn and get familiar with. That way, when you purchase a property, you feel GOOD about it. And while this may sound like common sense, many people rush into real estate purchases. We invite you to reach out to us with any questions. Or, keep checking back here on LUXE BLOG. We post a TON of relevant content here.