If you’ve been keeping an eye on the housing market over the past couple of years, you know sellers have had the upper hand. But is that going to shift now that inventory is growing? Here’s a breakdown of what you need to know.
What Is a Balanced Market?
A balanced market is generally defined as a market with about a five-to-seven-month supply of homes available for sale. In this type of market, neither buyers nor sellers have a clear advantage. Prices tend to stabilize, and there’s a healthier number of homes to choose from. And after many years when sellers had all the leverage, a more balanced market would be a welcome sight for people looking to move. The question is – is that really where the market is headed?
After starting the year with a three-month supply of homes nationally, inventory has increased to four months. That may not sound like a lot, but it means the market is getting closer to balanced – even though it’s not quite there yet. It’s important to note this increase in inventory is not leading to an oversupply that would cause a crash. Even with the growth lately, there’s still nowhere near enough supply for that to happen.
Where is the Scottsdale Market?
According to the Cromford Report, Scottsdale's real estate market is balanced, with buyers having a lot of choices and sellers facing more competition. The Cromford Report is a leading analyst of the residential market in Maricopa and Pinal counties.
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Median days on the marketIn June 2024, the median days on the market increased to 53 from 21 in 2022.
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Mortgage interest ratesMortgage interest rates have been decreasing in the past 2-3 weeks to lowest levels in 18 months, and industry experts are awaiting the Fed's move to cut interest rates in September.
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Buyer interestThe consensus is there may be a surge in buyer interest after Labor Day as we are still in a seasonal slow period.Scottsdale remains a favorable city to move to and still the 10th most favorable city for sellers.
