Change

Change is the only constant, and the world of real estate is no exception. From rising interest rates to an increased housing inventory, there’s been a significant shift in market indicators year-over-year. But before we start diving into the numbers, let’s remember: change is not synonymous with doom and gloom. Sometimes, change is just…change.

A Nationwide Snapshot

Comparing the national figures from May 2022 to May 2023, we’ve seen some notable shifts:

• Interest rates climbed from 5.10% to 6.57%
• Pending home sales decreased from 99.0 to 78.9
• Builder confidence fell from 69 to 50
• Unemployment rate improved slightly from 3.6% to 3.4%

Yes, these shifts might not seem overly exciting compared to the post-pandemic high. But it’s crucial to remember, the market ebbs and flows in phases.

Also Read: U.S. Housing Market Update: Heading Into Summer Of 2023

The Housing Market Is An Ever-Changing Landscape

A Closer Look At The Local Scene

Zooming into the local scene, we have:

• Unemployment rate: An improvement from 3.1% to 2.9%
• Housing starts: A decrease from 4,077 to 3,287
• Existing home sales: A drop from 8,726 to 6,535
• Housing inventory: A jump from 10,089 to 15,958, much closer to the ‘normal’ 25,000 for the Greater Phoenix Metro
• Days on market: An increase from 29 to 74

Remember, more inventory is a good thing. In the frenzied climate of low interest rates and minimal inventory, getting an offer accepted was an uphill battle. Today’s market is much more under control.

Also Read: One Dozen Killer Blogs Regarding Greater Phoenix’s RE Market

Greater Phoenix Inventory Rose From 10,089 to 15,958 Year Over Year

Key Takeaways

So, what does all this mean for us and for you? Here are the key points:

• Change is normal: Markets go through phases, and it’s okay to see shifts in these indicators.
• Higher interest rates aren’t all bad: They control frenzies and stabilize the market.
• More inventory is good news: Greater inventory means more choices and less competition.
• Improving employment: This is a positive sign for the overall health of the economy.

Final Thoughts

In an era of constant disruption, particularly with the rise of artificial intelligence, we’re learning to live with uncertainty. From here forward, EVERYTHING is subject to be disrupted. If you decide that now is the time for you, we at Williams Luxury Homes stand ready to help you buy real estate.

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