Are prices going down in Phoenix? My predictions for 2024

Are prices going down in Phoenix? My predictions for 2024

2023: Recap

Before we dive into the currents of 2024, let's take a quick glance back at 2023. It was a year of subtle shifts and surprises in the Phoenix housing market. While we saw a slight dip in the average home prices compared to 2022, the year wasn't all about declines. In fact, by the end of 2023, there was an astonishing 88.6% increase in average prices from December 2022 to December 2023. The median price rise was more modest but still significant at 4.6%.

2024: Predictions

Now, let's talk about 2024. If you're considering buying or selling in Phoenix, especially in the Southeast Valley, here's what you need to know:

Inventory Insights:  We're starting the year with less inventory than we had at the beginning of 2023. This means fewer homes are available for sale, creating a competitive market for buyers but a potentially advantageous one for sellers.

Interest Rates and Their Impact:  Interest rates have been a hot topic. While they remained high throughout 2023, there's speculation that we might see a decrease this year. This could be a game-changer, especially for buyers. Lower rates mean more affordable mortgages and potentially more buyers entering the market.

Price Predictions:  With the current trends, I'm predicting a continued rise in home values in Phoenix. We might see an average increase of about 10% in home values this year. For sellers, this is great news. For buyers, while this might mean higher prices, it also suggests a strong investment with potential for good returns.

The Rental Riddle: Interestingly, the rental market in Phoenix saw a bit of a dip in 2023, with average rents decreasing slightly. However, this trend might reverse in 2024, leading to an increase in rental prices. This is crucial information if you're considering turning a property into a rental or are currently renting and thinking about buying.

Your Strategy in 2024

Whether you're looking to buy or sell, your strategy matters:

For Buyers:  In a market where inventory is low, being pre-approved for a mortgage is more important than ever. It puts you in a strong position to move quickly when you find the right home. Also, keep an eye on interest rates. If they start to drop, it might be your cue to make a move.

For Sellers:  With home values on the rise and inventory low, you're in a strong position. However, pricing your home correctly is still crucial. Overpricing can lead to your property lingering on the market. A well-priced home, in contrast, could attract multiple offers.

Your strategy starts here. We can come up with a personalized plan together. I'm here when you're ready to get more information!

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