Reverse Housing Crash And The Market Forecast Of 2024 In Phoenix, AZ

Buying a home in 2024 just got a lot better… but maybe, not for long.

Ask yourself: Would you rather save $400 a month or do you prefer waiting until the end of 2024 to purchase a home and have to compete with over 4 million buyers that are causing bidding wars?

With mortgage rates falling an entire percent, being lower than 6.6% now, you’ll have a $450 decrease on your payment meaning that, if you’re looking for a $3,600 monthly payment, now it’s going to be closer to $3,200.

This is a big decrease for a lot of people, and it turned out to be a huge motive for those seeking to buy a home. Many are coming back into the market, or a least starting to consider it.

The reason why this is such an important topic is because some of the statistics we researched, Black Rock specifically, say that for every 1% decrease in the interest rate, 4 to 5 million buyers come back into the market.

If you’re looking to move to Phoenix, AZ, or within the area right now, the average home price is anywhere from $500K to $550K, but now that we have the interest rates on the decrease while mortgage applications are up, we see how that is enough to move the needle for a lot of people.

What do you think is going to happen if the rates continue to go down into 2024 and reach the lower sixes?

I’ll tell you what will happen: demand will continue to go up, people will continue to do mortgage applications, and the median prices for homes will go up too.

This is a recipe for a strong seller’s market where multiple offers are the norm and bidding wars are common.

With this in mind, you need to decide if now is the time to make the leap and buy a house or if the best choice is to sit around and wait.

Either way, inventory has increased from 10,000 to 11,000 homes on average, going up to 16,000 homes to more within Maricopa County’s greater area.

I can guarantee you that, if rates drop closer to 6% or even 5%, everybody’s going to go crazy and will want to jump back into the market right away.

That can lead to a lot of situations I saw in 2020 and 2021, where buyers went look at homes with patience, but competed with other buyers, dealt with multiple offer situations, and ended up paying over the asking price for the property.

For my team and I, what matters is that we understand your family’s goal and your goals as an individual as well; we’re here to support you in every single way.

If you need any extra advice to navigate this market, or if you’re looking for a home in Phoenix, AZ, don’t hesitate to contact me at: 

 

E-mail: [email protected]

Cel.: 623-221-8668

 

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