How’s the Housing Market This Spring?

By Jason Penrose

Jason has been licensed since 1999, and is currently one of the top 20 agents in Arizona for homes sold.

Have you been curious about the current state of the housing market? Whether you’re planning to buy or sell, here are the details that you need to know on interest rates, housing prices, and market trends. This information will help you through the current housing status with confidence.

As we wrapped up April and moved into May, we’ve seen some significant changes, such as:

• Active Listings: We have 21,002 homes on the market now versus 15,947 homes this time last year. That’s a substantial 31.7% increase in available homes.
• Listings Under Contract: There are 9,180 homes under contract now compared to 10,335 last year, marking an 11% decrease in pending homes.
• Closed Transactions: We’ve seen 6,933 closed transactions this year versus 7,187 last year, a 3.6% decrease in closed homes.
• Supply of Inventory: The supply has risen to 2.5 months this year from 1.7 months last year, a 47% increase.

So, what’s happening in the market? We are witnessing a weakening demand due to rising interest rates, while inventory continues to climb. The number of homes on the market has increased significantly—a 47% rise in the monthly supply of inventory.

Despite the low inventory, the cooling effect of higher interest rates has put the market in a state of flux. Homes are still selling, often at good prices, but demand has softened. Some potential buyers are hesitant, waiting for rates to drop, possibly by the end of the year. However, predicting rate changes is challenging.

What I can tell you is that the market remains strong. Homes are selling, and if you qualify to buy a home, I strongly advise considering it now. Waiting might mean facing higher prices or rates in the future, potentially pricing you out of the market and leaving you stuck as a renter.

Most people prefer to own a home, build equity, pay down their mortgage, and eventually own property free and clear. If you’re unsure about making a move, let’s discuss your options. Call or text me at (602) 738-9943.