Information is power… at least it’s what is needed to make the best decisions for YOU when it comes to selling or buying a property. I was so excited (and also had acid reflux from nerves) to provide some broad strokes on the evolving Phoenix housing market. I wanted to add and summarize here since, well, I blacked out and know I forgot some things, and also there is nuance worth mentioning.
Sellers
The “pay me to move” days are over. It’s time for you to be like Elsa and let that go because those days aren’t returning anytime soon. Many neighborhoods are considered buyer’s markets so your natural leverage with buyers is as slim as jim. You have competition – Active and Coming Soons valley wide are around 20,000. And buyers are sluggish – showing requests (these are the active buyers out looking) have dropped over 40% since April. The contract ratio measures how many homes are for sale versus pending – that number is staggeringly low too. This is because the interest rate increased rapidly earlier this year making buyers slow to pull the trigger AND I think psychologically buyers have been getting beat up over the last year causing many to drop out or have lost their appetite for now.
This isn’t doom and gloom though, it really isn’t. You guys, you gained SO MUCH VALUE over the last couple of years just due to the market going wild. This happened whether or not you improved your property… just because you owned it, likely your equity skyrocketed. You’ve now lost SOME of that increase but likely not all of it. Yes it’s sad, but you’re still winning so you can dry your tears with your free money 😂 and cry me a river a’ la Justin Timberlake. Now, what you can expect is a fair price for your home, you’ll need to be flexible about repairs, you’ll need to not have dog poop in your yard for showings, you’ll need to hire someone (my team) who can help you navigate to the best price to market your home for its top potential and then listen to us (my team) when we tell you that price. If you receive a close to target offer and not much more, consider yourself blessed and try your best to make that work. If not, you’ll likely be leaving more on the table in the end.
Buyers
It’s time for you to get a fair deal on a home. Despite what you hear about interest rates, is a crash coming, etc etc, you must look at this moment way more simply and from a higher altitude.
The best question to ask yourself is “how can I get the right property now and have a monthly payment that works for my family.”
I say this because there is so much opportunity right now because of seller uncertainty – change is scary – mid change is a great time to negotiate. Once things settle into a new norm I believe sellers will no longer be quite as eager to sell… already the rate of new listings finally flattened last week for the first time in months. This means that sellers are starting to get the picture and many will forego selling soon, pull their homes off market and decide to stay and renovate. Buyers, strike now while sellers still have some hope for their properties so you have better options to choose from – then have the seller help you with buying your rate down, paying closing costs, getting credits towards cosmetic changes, etc. If you don’t own a home at all, don’t choose to continue to rent if you can buy. Real estate is a long term game, the longer you wait to jump in, the longer it takes to start winning at the game. Fact is nationally, homeowners have FORTY TIMES more net worth than renters… gains in wealth stand the test of time and changing waters. Come on in, the water’s fine.
If I’m a buyer and I see a property on market for a couple of weeks, I am making a fair offer (not a low ball, be smarter than that). And then I’m negotiating some concessions, some credits, some repairs to shape the deal to my ideal… if it works then you win… you cannot get these deals if you refuse to offer or if you make off-putting offers up front. Again, the long game wins here, strategy is key, but you must take action and offer.
My true sense right now is we are in an environment ripe for WIN WINS. Getting there takes professional leadership, it really does. Do not risk a B-Squad or discount hire to thread this needle, you’ll regret it. This goes for new builds as well. For godsakes you don’t fill your own cavities, you aren’t Tom Hanks stranded on an island with a rotten tooth – hire a REALTOR to do our thing so we can net you the most or properly negotiate and structure your purchase.
I’m always here, my team is excellent. We will tell you, seller or buyer, what you need to hear even if it’s not what you want to hear. Because just like a coach, we only win if you win – and who doesn’t want to win?
602.696.7859 – text me anytime. About real estate preferably.
