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'This is not a market crash': Phoenix housing market cooling down to 'normal,' experts say

Experts say the Phoenix housing market is cooling thanks to higher interest rates, but it's more like a correction than a crash.

PHOENIX — The Phoenix housing market is cooling down, but to a level real estate experts consider "normal," not crashing.

Earlier this year, the average home was listed for only five or fewer days before getting an offer. The average home goes 10-20 days before getting an offer, according to the Arizona Association of Realtors

And, the group says, there are 16,000 new homes listed per day as opposed to only 4,000 at the height of the real estate boom. They consider "normal" to be 35,000 homes listed per day.

RELATED: Phoenix slashing for-sale home prices at the third-highest rates in the country, data shows

“This is not a market crash," Arizona Association of Realtor's treasurer Sindy Ready said. "Prices are staying about the same; they're adjusting a little bit...mostly on listings that were overpriced."

And experts say this is a very different situation than the housing crash of 2008.

The Federal Reserve raised interest rates again Thursday to try to help control inflation. The result of higher interest rates is a "cooling off" of the economy, which trickles down to the real estate market. 

RELATED: Here's how the latest interest rate hike affects your wallet

"Even though supply is still considered low, demand is also coming in low," said Tina Tamboer with The Cromford Report, a real estate analysis site ."We can't expect interest rates to go up from 3.1% in December, all the way up to as high as 5.8 or 6 in some cases and not see some kind of result in the demand.”

iBuyers, companies like Opendoor and Offerpad, who buy homes and resell them, are also slowing their buying spree, Tamboer and Ready said. 

"A lot of these corporate iBuyers were flipping their homes to institutions based out of Wall Street," Tamboer said. "So when Wall Street started to pull out, they scaled back quite a bit."

Ready said she expects the market to continue to cool to a more normal level for the next six months or more. 

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