By Jonathan Bodeen · 30 June 2024
It often occurs that different parts of our fair Phoenix metro area behave very differently from one another. One such phenomenon we have now is the case of two very different market conditions between our outskirt cities/neighborhoods and the more inner ones.
Cities like Buckeye, Good Year, Maricopa, and Surprise are in buyer’s markets, whereas most Phoenix area zip codes are still showing advantage to sellers.
Why is this? There are a whole host of variables, but one significant one is the prevalence of large scale new home building in these outer areas. These new homes create fierce competition for their older brethren. This is especially true with interest rates as high as they are. The limited buyer pool is, in these areas, often tempted away from the resale home market and into the show homes of these builders. These builders often have in-house lenders and can be more competitive on rates and closing cost incentives.
Still, as a whole, the city tends to drift one way or another with the market, like a jelly fish pulling it’s ungainly tendrils along, even as they seem to be going in different directions.
And that general direction, as you’ve probable noticed from recent snapshots, has been gently down.
Interest rates have been cooling slightly over the last few weeks. Our read continues to be that if these rates can get to the low 6s again, demand will improve.