Today, we’re addressing a very common question: Is the market going to crash? If you flip on the news, you'll hear about the housing market crashing and the sky falling. However, I'm here to tell you that this is not rooted in truth. To show you this, I’m going to break down what's happening in the Phoenix market right now and explain why it’s still a great time to consider buying and selling a house.
The No. 1 thing we have to look at is inventory. Right now, we have about 20,000 homes for sale in Phoenix, which is a very healthy number. Of those 20,000, about 7,000 homes are spoken for, meaning someone is buying them. Therefore, we have a 2.5-month supply of homes.
Let’s compare this month's supply to what it was during the last crash. From 2007 to 2009 there were 54,000 homes for sale, and only about 3,700 sold. Therefore, you can see that our market is very healthy now compared to what it has been in the past.
"We don’t need to be concerned about this market shift."
During the pandemic, we had a very low supply of homes for sale. At the lowest point in time, there were about 3,000 to 5,000 homes for sale in Phoenix, and we were selling over 8,000 a month, which shows that there was only a two-week supply of homes. This was very unhealthy and not normal. However, starting around the second week of March 2022, inventory levels went up at a very fast pace, from approximately 4,000 homes to 17,000. Since then, we've seen those levels stabilize. We’re currently at about 20,000 homes. We did experience a big shift, but it’s mostly behind us, and while homes are taking longer to sell, prices are coming down marginally. This is nothing to be concerned about.
If you're thinking of buying or selling, reach out through phone call or email. I'd love to show you how the market affects you and your specific plans. I look forward to hearing from you!