PHOENIX — After two years of one of the hottest seller markets on record, buyers have more of a chance.
The Cromford Report, which monitors the housing market in the Valley said by their metric, that the market is balanced for the first time since 2014.
So how did this happen?
Back in February, experts said the market hit its high point for sellers. Homes were staying on the market for an average of four days and the majority of homes were going over the asking price, according to Tina Tamboer, Senior Housing Analyst with The Cromford Report.
However, in the spring, interest rates went up.
“That’s what happens when you see your interest rates go from 3 percent to 5.8 percent in six months,” Tamboer said.
The market started to change shortly after the increase, as the rising interest rates made mortgage payments more expensive.
“It seemed like it happened within a two or three-week period,” Jeremy Fierstein, a realtor with West USA Realty said.
Since then, demand has dropped drastically, matching the below-average supply.
“Your demand is down is about 20 percent below, but supply is 20 percent below normal, so that’s balance,” Tamboer said.
So what does a balanced market look like? Currently, Tamboer said the average home stays on the market for nearly a month and only around 20 percent of homes sell for an above-asking price.
“We've gone from a market for the not-so-perfect home," Tamboer said. "And here we are about five months, and this is the market for the not-so-perfect buyer.”
There are exceptions. Areas like north Scottsdale are still in a seller's market. However, areas with high levels of new construction, are experiencing more of a buyer's market.
So are we heading to a crash?
Not likely, as the supply does not support it.
Before the recession, there were more than 50,000 homes on the market and would be for sale for more than 130 days.
Currently, there are around 17,000 homes on the market.
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