A major shift is happening in the Maricopa County real estate market.

Today, I’ll talk about the shift in our real estate market by sharing the stats on our home values and listings under contract. 

Last year, traditional buyers took a back seat to an influx of cash investors and speculators who outbid them. Then, mortgage rates increased and suppressed their power even more. As of November 2022, traditional buyers have once again returned to 71% market share, and investors have retreated under 20%. 

The median sales price in January declined $65,000 from $475K to $410K, and both FHA and conventional loan limits increased for 2023. Some buyers believe that prices will continue to drop dramatically in 2023 and continue to wait. 

At 0:14 in the video above, you’ll see a chart that shows every single city in Maricopa County with increasing values. This is a dramatic change; now, we’re moving from a buyer's market back into a seller's market. 

The shift is a direct result of the fewest number of listings added to supply in the 4th quarter of the year going back to 2000. Fewer listings mean fewer competitors for sellers. Demand is still low, but when it’s met with low supply there is less downward pressure on price. 

Meanwhile, listings under contract, despite the downward trend at the end of 2022, are showing a clear rise in 2023, indicating that this shift is expected to continue throughout the spring.

So, what does this mean? We are in a "No Man's Land" where the market could be balanced, a buyer’s, or a seller's market. 

We will continue to see price drops, negotiations, concessions, and rate buydowns this quarter. 

Nevertheless, if you work with the right agent, now is a fantastic time to sell or buy a home. This occurrence is very rare, and there will be a short window to act. If you have any questions about this or anything about real estate, feel free to call or email me or another Good Company agent. We will be happy to assist you.