National housing experts say as temperatures cool down this fall, the recent home-buying frenzy could be slowing down as well, but will the same happen here in Arizona?
We know prices have skyrocketed here in the last 12 months. According to Zillow, Phoenix and Scottsdale home prices jumped 30%, Mesa 29.5%, and Chandler and Tempe rose 27%. Median home prices range from over $700,000 in Scottsdale to $360,000 in Phoenix.
Buyers have taken drastic steps that include waiving inspections, writing letters to current owners, even offering tens of thousands of dollars above the asking price just to move in.
However, Natalie Campisi, a Mortgage and Housing Analyst with Forbes Advisor says that is all starting to change.
"Good news for homebuyers is that sales are decreasing just slightly over the last couple of months," said Campisi.
With demand down, prices could be following as the supply of homes on the market grows.
"We're seeing a little more inventory creep on market, which means people are having to get a little more realistic about their pricing," said Jan Leighton, President of the Arizona Association of Realtors.
She says she doesn't expect prices to drop here but says competition won't be driving up the costs quickly.
Leightons adds that we're seeing signs of buyers' fatigue, coupled with the traditionally slower fall when kids are back to school and the holidays are around the corner.
"There's more open house signs out. And to me, that's an indication that the markets cooling down a little bit," said Leighton.
Mortgage rates are also the lowest they have ever been, but economists say that could change heading into 2022.
So, what does this all mean for you if you are in the market for a new home?
Leighton tells us you should talk to your lender now and go over down payments. She says with homes expected to hold their value, the payment you have to make could be larger than what you are currently planning for.
There are a number of down payment assistance programs that could help if you qualify. Just a few are listed below:
- Pathway to Purchase (AZ Dpt. of Housing): https://housing.az.gov/general-public/pathway-purchase-down-payment-assistance
- Trellis - A Non-profit helping families buy homes: https://trellisaz.org/
- Maricopa County Down Payment Assistance: https://www.maricopa.gov/1361/Housing
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