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Tim Potempa discusses the current real estate market

Posted at 9:40 AM, Aug 08, 2022
and last updated 2022-08-10 18:34:26-04

The Potempa Team is a paid advertiser of Sonoran Living

Should you buy or sell your home - An Update on the Arizona Housing Market
The housing market in Arizona has been a seller's market in the first part of 2022 but taking a look at the mid-July housing report brings up questions about how these last four months of the year will go. Market models predict a small bounce back from June 15 to July 15 in price-per-square-inch from the decline that occurred from June 15 to July 15.

While that bounce back will likely occur, there's something larger looming on the horizon. Demand is waning at a time when supply is growing. This could cause the underlying pricing trend to remain weak, which could result in a downward trend for price-per-square-foot for at least the remainder of the year.

Massive Drop in Price-Per-Square-Foot
On June 15, homes were selling for an average of $304.50 per square foot across the Arizona Regional Multiple Listing Service (ARMLS®). That dipped to $291.74 on July 15. That's a massive 4.2% drop, which signals a major shift in the home sales market.

Despite the fact that the housing market is still resilient, the numbers seem to indicate a friendlier environment for potential buyers as more homes hit the market.

Change in Sale vs. List Price
The mid-June numbers showed that prices were selling for 101% of the actual list price. In only 30 days, that dropped to the sold price being only 99.3% of the list price. That's a huge swing in the percentage that's never been seen before indicating that the market is shifting to be more friendly to future home buyers

What does this mean for Buyers?
In the Arizona home market, home ownership continues to be a great financial investment. As compared to historic levels, mortgage rates remain low and trail overall inflation by a wide margin. By owning your own home, you can build consistent wealth and increase your net worth. As you make mortgage payments, you build equity in your home setting yourself up for a comfortable retirement.

Get Pre-Approved for a Loan
Getting pre-approved for a loan is one of the first things you should do when looking for a home in Arizona. This will allow you to only look at homes within your price range and make an offer when the time comes!

The buying process can seem intimidating for homebuyers, but with the help of a seasoned realtor and highly experienced mortgage professionals, such as the Potempa Team, the process can be smooth and enjoyable regardless of the market. Our Arizona-based team can help you find the mortgage that will work best for your family's unique situation and help you get into a home without delay. The Potempa Team (866) 397-0904 PotempaTeam.com