Everywhere we hear people talking about the real estate market in Arizona.
“Looks like prices are holding their own in your neighborhood.”
“Whoa!! Just wondering and talking to friends about it. Not buying🤓”
“I'm seeing a lot of price cuts.”
So, you’d like to know how the market in Arizona is doing, also?!!
Well, it’s a little confusing. One thing has not changed. The actual closing data is reported about a month or two behind the actual change that takes place. When someone contracts to purchase a property, the closing/pricing information will not be made public until the transaction actually closes, so we are a little behind what’s actually happening.
Recently I was involved in an escrow where the buyer continued to watch the market after signing his purchase contract. As interest rates took another slight upward hike, he noticed that there seemed to be a lot of price reductions in the homes he was targeting online.
He got a little anxious, so he asked the seller to reduce the contracted price during the due diligence period - in Arizona that’s the first ten days after contract - and to validate his concerns, his seller agree to do just that. This seller kept his escrow opened. Although it was a little different closing than anticipated, everybody was happy. The buyer got a lower price and lower monthly payment, and the seller finally got it sold.
With the recent pronounced escalation in Arizona prices, and the recent steady escalation in mortgage loan interest rates, the real estate market has really become a challenge, particularly for purchasers who are borrowing to purchase. First time buyers, as well as repeat buyers, who do not usually have cash to close, are really experiencing some challenging times. Most competitive offer situations are being won by the cash buyer. One buyer actually exclaimed, “And they’d rather sell to and investor than a family!!??”
Hang in there ladies and gentlemen…it’s not over yet. More to come…