According to data collected by the online real estate database, Zillow, the metro Phoenix real estate market is currently favoring sellers.
In June, just 4.9% of Phoenix Metro homes lowered their asking prices compared to 7.8% in June of 2019, according to Zillow.
An economist with Zillow said that sellers are taking advantage of housing inventory that continues to drop thanks in part to stagnant construction.
“They recognize they’re in the driver seat, so they’re not in a hurry to cut prices to attract more offers,” Jeff Tucker said.
He added sellers waited out the pandemic as their home values grew and now they’re also dealing with cautious buyers.
“They’re not going to get a real good deal shopping right now,” he said. “The good deal is the mortgage rates.”
Buyers returning to the market seeking a change in the quality of life are also adding to the demand contributing to the current seller’s market, according to Tucker.
“A lot of people who may have outgrown their homes, or they’re ready to move up from renting to home ownership are thinking this may still be a good time to go ahead with that,” Tucker said. “That’s if they didn’t lose their jobs in the waves of layoffs in the last few months.”
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