The Arizona real estate market will have better inventory and balance in 2023, the Arizona Association of Realtors® predicts.
In recent weeks, median sales prices and mortgage rates have dipped slightly from their peaks earlier in 2022. The supply of homes has grown to an estimated three months, up from a supply of about three days earlier in the year.
“Arizona’s housing market has been one of the hottest in the country the past couple years. And with mortgage rates dropping slightly and more housing inventory becoming available, we’re starting to see more buyers in the market,” said Eric Gibbs, 2023 Arizona Association of Realtors® president and designated broker of Realty One Group Integrity in Tucson.
In the coming year, sellers will need to be realistic on pricing and make their homes show-ready, the association said in a news release.
The association’s leaders expect more creative financing and purchase options to help finalize deals, including down payment assistance programs and sellers offering to buy down interest rates.
Chief economist for the National Association of Realtors® Lawrence Yun predicts interest rates will retreat to less than 6% by the end of 2023, which should create an uptick in housing sales activity.
“I still see low inventory, but the market is shifting to a more even market, one that doesn’t favor a seller or a buyer too heavily.” said Shelley Ostrowski, 2023 Arizona Association of Realtors® president-elect and designated broker for Realty One Group Gateway in Yuma.