Mesa, Tempe & Scottsdale, AZ Real Estate Market
The Mesa, Tempe, and Scottsdale real estate market has been decreasing over the past few months. Historically speaking, resale housing activity has been quite positive during this time of the year. Nevertheless, the sales this year have been slightly lower than they have been in previous years. This demonstrates that the resale market might be growing increasingly feeble. In actual fact, this year is the weakest that the Mesa, Tempe, and Scottsdale real estate market has experienced in the past six years.
Experts did not expect that the level of activity in the Mesa, Tempe, and Scottsdale real estate market would match those of previous years. They did not predict, nevertheless, that the market would decline as much as it has.
In the previous year, there was quite a rapid increase in the average home prices in the Mesa, Tempe, and Scottsdale real estate markets. Even though the home prices have flattened this year, the market will continue to suffer from the dramatic increases in price.
The Mesa, Tempe, and Scottsdale real estate market has seen an important decrease in the number of first-time buyers. In addition, there has been an increase in the move-up markets – people who might’ve been purchasing larger houses than those that they currently might own. These conditions combined tend to contribute to the slowing housing market. Stable or increasing median prices are likely to be seen during this period of time. This is why a vast majority of homes purchases in the Mesa, Tempe, and Scottsdale area have fallen between the $200,000 to $299,999 range.
Increasing mortgage rates also tend to contribute to the weakening market conditions. This tends to make houses less affordable than they have been in the past. Rates are up by 1.0%, thus causing the mortgage rates on a median priced home to increase from $1,180 up to $1,405.
Investors and home sellers are seeing to it that buyers be reluctant to purchase homes due to the rapid price growth in the area along with the increase in mortgage rates. An additional factor that contributes to this reluctance is the uncertainty about the future appreciation of homes. If homes do not appreciate, the prices will continue to rise, and home owning will become undesirable. It will therefore become increasingly difficult for homeowners to maintain their homes under these conditions. Home sellers will find that homes tend to remain on the market for a longer period of time, sometimes without any offers.
Current investors in Mesa, Tempe, and Scottsdale real estate should sell properties as quickly as they possibly can in order to cut their losses. It might even be possible to make a small amount of profit from the sale, but the priority at this point should not be towards making a profit. Instead, it should be to sell the property fast without incurring any additional costs. Waiting around for market conditions to improve will only cost more in the long run as buyers will take control of the market.
Home sellers should attempt to price their homes in a competitive manner but not so high as to turn away from potential buyers. In order to make sure that Mesa, Tempe, and Scottsdale real estate is priced properly, sellers should try to pay close attention to similar homes that have recently been sold in the area.