Today’s AZ Republic reports that we’ve seen an uptick in sales from January to February this year. It appears that March will have more closed sales than February. Could we be turning the corner in our market? While sales are on the increase, two months isn’t enough to mark a trend but if activity is any indication that we are turning, we just may be at the bottom of the market. Good news for anyone who is “in the market!” At My AZ Home Team, we are seeing more calls and inquiries than we’ve seen in months. As we talk to other agents, they are seeing the same trend. So it seems that sales will continue the uptick. The ratio of pending sales to new listings is narrowing, another good indicator of a market shift. Days on the market for pending sales in the east valley are back to around 90 days, a dramatic shift from prior months as well.
What does this mean to buyers and sellers? There has never been a better time to buy with interest rates at historic lows. Sellers have more buyers in the market now than in many months. Homes that are priced right and in top condition are getting offers much quicker than in past months as well. So regardless of which side of the equation one is on, this is prime time! Interest rates may not stay as stable as they are now, however. As they year moves forward the expectation is that rates will begin to rise in the coming months. For every 1% rise in interest rates, a buyer’s buying power shrinks by 10%. Sellers will need to be more creative in financing options.
So don’t delay, whether you are selling or buying or a combination of the two. This is the best time in months!
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