Phoenix Residential Real Estate Forecasts in 2023
The Phoenix Metro real estate market has continued to favor home sellers in 2022 and moving into 2023, there are certain trends that we expect to continue witnessing. As real estate continues to recover from the negative impact of the COVID-19 pandemic, we have witnessed an influx of people moving to Arizona. As a result of high population growth, the demand for residential homes in Phoenix has increased significantly in 2022 and this has pushed home prices to also go up significantly.
As we approach the holiday season, the inventory has gone slightly low due to market forces of demand and supply. As we approach 2023, most homebuyers and sellers are now looking for future prospects that are likely to turn out as follows;
Phoenix market is going to be more balanced
In 2023, Phoenix residential housing market is likely going to be a balanced market for both buyers and sellers. We are likely to see more bargaining and buyers will have more options as inventory is likely to increase. Home sellers should also expect to see fewer multiple offers as there will be more seller competition.
Sellers will need the help of professional real estate agents to help them prepare their homes for sale since only homes that will create a first positive impression will stand a better chance to sell fast. There will also be a high number of home sellers agreeing to contingency on the home appraisal which is not the case today.
Homebuyers will need to get preapproved before sending their offers as sellers will also be very keen not to sign any sale contract agreement with a buyer with mortgage approval uncertainties. Mortgage interest rate is expected to continue rising and buyers will need to negotiate with their Arizona lenders for more competitive rates.
Inventory growth rate
Residential listings in the Phoenix metro have increased significantly from the beginning of this year to September 2022. Inventory is likely to go down if the high-interest rate will be moderated to make Arizona mortgage homes more affordable. We will also likely see a decline in the average number of days listed homes stay on the market.
The number of new home builds is likely to continue increasing as raw materials and labor are now in plenty. When inventory increases, there will be less competition between home flippers, real estate investors, and residential homebuyers in Arizona as we prepare to usher in a new year. As more people continue to move to Arizona in their pursuit of high quality of life and low cost of living, Phoenix residential real estate market is expected to record positive growth as the market is expected to continue stabilizing.