October 2022 Market Update

October 2022 Market Update

  • Susan Solliday
  • 10/18/22
Another month, another contradiction. We’ll keep looking for answers and bring you what we find. October brought another month of contradictory messages showing Seller favorability while listing prices dropped, prices reduced, and fewer sales logged. Fall listings normally drop due to the approaching holidays. Still, it’s clear this market has little to do with seasonality alone—and those factors are making both buyers and sellers reluctant to make a move as they wait to see what may come next.

Take heart, the Arizona housing future looks good, needing “more than 122,000 homes to right-size its housing market” according to the Phoenix Business Journal. People are working, and we are no longer tied solely to hospitality and tourism. Our economic infrastructure is far more diversified, ranking 16th in the tech industry per The Business Journal. The Greater Phoenix Economic Council reports almost 11,000 new jobs, average wages of $76,000, 55 new businesses, and hundreds of domestic and international prospects. Things may be tough right now, but take heart, metro Phoenix is growing.

So where are the Sellers? Last year it was possible to obtain a 30-year mortgage for around 3%, now the same mortgage costs almost 7%. 90% of current owners have record low-interest rates at a 4% interest rate or lower, and these comfortable housing costs entice owners to stay put.
We can’t escape the fact though that we are gliding into a colder market and tougher times for sellers. Listing your home today may net you more, but you will have to deal with holiday showings and lowball offers from investors looking for end-of-year deals. Wait until 2023 and you can expect lower comps. 

Buyers are electing to ride out higher rates as they are pulled into lower price ranges or out of the market entirely. Instead, they should be goal sensible, looking for the best rate to approach a similar monthly investment as a year ago, when rates were lower but prices more inflated.

Great rates and lending programs can still be found. It’s important for buyers to lock in at a rate that gets close to their goal as rates change daily. Mortgage rates have never been a smooth ride. If future rates rise, today’s rates will seem like a missed opportunity. When rates drop, and they will, owners can always refinance. In fact, there are loan programs, permitting refinancing without costs, for up to 3 years after closing; as well as loans tailored to expanded professional groups.

Looking to buy? Click through to read about the pros and cons of new construction vs resale homes

As always, if you have any questions, message us!
Photo by Vita Vilcina on Unsplash


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