Even with Desert Ridge real estate listings accumulating more days on market than what many sellers would prefer, one wouldn’t know that the Phoenix real estate market is slowly shifting to a more balance market, by looking at the continuous and steady rise in average sales prices.
I don’t think the charting of statistical data gets any more simple than the chart above but it does allow you to see what has been going on with Desert Ridge home sales over the past 2 years.
We are in an environment where buyers are having to adjust to the idea of “higher” interest rates, we are seeing many more homes for sale accumulate more days on market resulting in more price reductions and we’re seeing more buyers drop out of escrow than we have seen since before the 2004 Phoenix real estate boom, yet average sale prices for homes in Desert Ridge are doing more than just holding strong at $180/sq ft.
Some of the hype in the market place seems to be related to the inevitable rise in mortgage interest rates with the point being that rates have been so low for so long, even the baby boomers are expressing a shell shocked response to rising interest rates even though they are still well under 5% APR for a 30-year fixed.
At some point should home buying be softened by rising interest rates, we think that would become a fairly strong basis for another move in increased rents ultimately being the figure a prospective homeowner might compare against when considering a real estate purchase, despite the borrower’s rate of interest.
Time will tell as we enter into the month of January which is typically a strong buying season for Arizona homes and land. Until then, if you have any questions or would like detailed breakdowns of specific area real estate data, give us a call or drop us an email. Thanks for reading and please have a safe holiday season.