‘Balance’ may be one word that fell out of the Valley’s vernacular, but we have the local buyer shortage to thank for putting it back.
A local real estate expert said the lack of buyers is a good thing, because it will help keep the Phoenix area on track to hit a balanced real estate market.
You think I’m joking right?
Let me explain.
First off, where did all the buyers go? It was just a couple of months ago that we were hearing about rising prices, buyers competing for properties and stories of multiple offers. It felt like we were back in 2006, didn’t it? There are a few reasons why buyers have crawled back into the woodwork.
“That’s (the price increase) going to put buyers off to a certain extent. Interest rates are bad news, on top of that, and then there’s the uncertainty,” Orr explained. “There are lots of headlines and scary stories. We’ve got people talking about it being a bubble, which puts people off. They may have been caught the first time, but they certainly don’t want to make the same mistake twice.”
Is there an upside?
Fortunately, yes. The lack of buyers helps push the real estate market to a “balanced” market.
Orr says that definitely the lack of motivation to buy at the moment is causing things to get back to normal.
“We still have areas which have less supply than others, but overall, the market is heading quickly back to market, if we stay on the current track,” Orr said. “By mid-November, we should be back to a normal overall situation.”
Weren’t we just seeing multiple offers and homes flying of the shelves in June and July?
In short? Yes.
“I think everyone’s surprised at how quickly it happened. It seemed to stay frenetic for so much that people thought maybe we weren’t going to go back to balanced,” said Orr. “In July, we were still very strongly short of homes and just three months later, we’re almost back to balanced. That’s quite a fast change.”
So, how long will it last?
“Phoenix is a very dynamic market and fast market, so who knows?” Orr said. “We may not stay balanced for long.”
Listen for more Phoenix real estate news with realtors Diane Brennan and Rod Lakin on That Real Estate Show Saturdays at 3 p.m. on News/Talk 92.3 KTAR.
- The 5 worst things you could do for your roof
- 6 coolest things brewing in Arizona
- The virus that keeps head and neck cancers on the rise
- State Fair ‘Kid Reporter’ has all the angles covered
- 4 important things to know about timeshare maintenance fees
- Signs of delayed car crash injuries
- The truth about sports concussions
- The Alzheimer's epidemic: Facts you need to know
- The season is here, keep your Fantasy Football team strong all season
- 8 TV shows you can't miss this fall
- Football is here: 6 tips to make this your best season ever
- Gameday recipes and beers to match
- 6 reasons the Cardinals are driven to win the Super Bowl
- The Pac-12 football season nears kickoff
- Tips to get ready for a pain-free golf season
- Protect your family with these 7 home security features
- How to train like an Olympic swimmer
- 2016 Olympics: A guide to must-see TV events
- The bride's guide to feeling your best on your wedding day
- Deciding when you need knee surgery
- Celebrating Fourth of July is much cooler in these AZ towns
- Top ten road trip bathrooms in America
- Six things causing a pain in your neck
- 5 things to make your summer move easier
- Three elements of a strong timeshare exit guarantee
- Stretches and exercises for carpal tunnel syndrome
- The best Major League ballparks have their own personality
- Comparing the best regular seasons: The '96 Bulls and '16 Warriors
- 3 Arizona road trips and the vehicles to get you there
- Colon cancer is preventable. Check these signs and symptoms to stay healthy.