This week I had one buyer say “all our criteria is out the window, at this point we will be happy with a roof over our heads.” I also had another buyer determine after months of looking that they’re going to resign at their rental lease for another 12 months. This lack of confidence in the general affordability and quality of supply is bound to drive demand further down. In theory, less demand should help alleviate the supply issues, but our supply is so significantly depressed that even a dramatic decrease in demand isn’t likely to make a dent. 

I’m also hearing similar sentiments from the seller side of things… Homeowners want to move, but they’re underwhelmed by the quality and price of the homes available to purchase. Additionally, it’s increasingly difficult to get a home under contract with a contingency while you still own a home you’ll need to sell. This is further compressing the housing supply issue with people not moving within the city and thus not returning their homes back to the supply. 

For now, prices will continue to climb, but I believe we are nearing a threshold for market appreciation where prices will continue upward but at a much slower pace than the last 12 months. If you’re looking to buy or sell, now is still a good time with low interest rates and pricing projected to continue to increase. However, it takes a bit more patience and tenacity than a more balanced market so make sure you’re working with a market authority, like myself, who can coach you through from start to finish. 

Lindsay Fricks, Helping you, your family and friends Live & Love in Arizona!