Making history after a difficult year for residential real estate and clearing the desk for a bright 2024 is how the professional members of Phoenix Realtors look at their calendars.
High interest rates, economic adjustments and reluctant sellers mean 2023 isn’t exactly optimal, with home sales the worst year since the Great Recession of 2009.
With interest rates down 1% since October, and likely after the beginning of the year, Phoenix Realtors, the professional organization representing certified real estate agents in the greater Phoenix area, predicts increased competition in the housing market. Expect.
The first challenge is building inventory. Sellers have been reluctant to put their homes on the market, and through November, West Valley communities have seen a decline in new listings by 20% to 25% compared to 2022. The only exception was Litchfield Park, where stocks were down just over 10%.
Buckeye and Tolleson ended the year with about the same pending sales as 2022. Both cities were statistically flat, with just less than a 1% decline. Avondale, Goodyear, Litchfield Park and Tolleson saw pending sales decline by 7% to 10% from 2022. All five cities had a negative sign in this statistic, but the West Valley fared better than other submarkets, with pending sales down significantly from 2022. Compared to last year, it is nearly 20% to 30%.
It’s difficult to pinpoint why one city is better than another at a particular data point in residential real estate. The only town in Greater Phoenix with closed sales increasing was Tolleson, up 4.7% from last year and showing a rebound from the price drop in November, with median home prices up more than 2% from last year to 40. It cost over $8,000. .
In the other four West Valley cities, closing sales were down just 3% in Buckeye but nearly 18% in Goodyear.
Median sales prices for Buckeye and Goodyear fell about 2% to $393,000 and $490,000, respectively. In addition to Tolleson’s increase, the remaining two cities were Litchfield Park, which rose more than 21% to $531,000, and Avondale, which rose 6.1% to $438,000.
With interest rates still high, some sellers are reluctant to list and are concerned about finding a replacement home. There are buyers in the market, and more buyers are coming. For sellers, waiting means it will cost more to buy a replacement home than it would cost to keep the home at a higher price.
Real estate agents have the experience, training, and resources to represent buyers or sellers in any transaction and find the right deal. The ability of certified professionals to spot these opportunities puts real estate agents in a better position to serve their clients than transaction offers from sales agents or owners.
Maricopa County once again had the highest population growth in the country. Major new employer and job creation trends have been announced in the West Valley. Because of this, the area will become a hotspot for an influx of people who want to work and live in the Valley in 2024.