We're not seeing major changes in Phoenix just yet, but we're starting to see signs of a cooling market. More buyers are holding off as home ownership becomes too expensive. More sellers are dropping their asking price. Housing supply is sharply increasing. In addition to the disappointing housing data, initial jobless claims topped 250,000, the Leading Economic Index dropped for the 4th month in a row. The futures market also expects a .75% rate hike at this week’s Fed meeting, followed by smaller spikes going forward. Please note a Fed rate hike is NOT a direct hike to mortgage rates. Instead, mortgage rates usually get at least slightly better after a Fed rate hike. Buyers are much more aware of the dramatic change in the market than are sellers. New sellers will need to take time to understand just how different market conditions are today compared with 3 months ago. They should not expect multiple bids. As a result of these factors, we expect house price appreciation to moderate considerably.
Watch this video for the latest Phoenix Arizona local and national housing market insight.
https://youtu.be/knm8-GfyTzM
