Good news for buyers over the past few weeks, interest rates came down a few notches. That combined with the increased loan limit for conventional financing gave buyers a little boost. The new loan limit for conventional financing in Maricopa County is $484,350 as of a few months ago and the new limit for FHA financing is $314,827. Just 3 years ago, the limits were $417,000 and $271,050 respectively. The FHA limit increase hasn’t had as much impact on buyer demand as the conventional increase thus far. While the overall market is down 8.7% in sales this month, the biggest winner has been the $500K-$600K price range which is up 15%.
“Buyer Season” in Greater Phoenix typically lasts from February to May with a peak in April. Sellers who decide to list their home in March should be aware that they have just 8-10 more weeks of peak buyer activity before the summer slowdown. This is a very competitive time for sellers. Price reductions are at their seasonal peak in the luxury price ranges, however it’s most noticeable in the battleground price range of $200K-$400K. The number of weekly price reductions on listings between $200K-$250K are up a whopping 71% where competing supply is 32% higher than last year and price reductions are up 42% between $250K-$400K where supply is 26% higher. It’s a good idea to be competitive in both price and condition right out of the gate as buyer demand remains below normal overall in Greater Phoenix.
Commentary written by Tina Tamboer, Senior Housing Analyst with The Cromford Report
©2019 Cromford Associates LLC and Tamboer Consulting LLC