What Could 2022 Mean for the Queen Housing Market?

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Real Estate

The last few years have been nonstop uncertainty. The coronavirus pandemic led to shutdowns and major changes to our everyday lives that we are still recovering from. Dramatic increases with short supply led to affordability issues. Now coupled with high interest rates what will happen?

Leveling Prices
Inventory has gone up significantly with investors commanding about 25% of the available homes on the market. New construction has about 13% of the available homes. Rental homes that are now being sold make up about 15% of the market. Finally, owner occupied make up the remaining 47%. With all of the inventory that suddenly hit the market and higher interest rates, it has created a more balanced market with lower demand and higher inventory.

Balanced Market
A balanced market is now being experienced in Queen Creek and many areas in the greater Phoenix region. What does this mean? Sellers must prepare their home for sale and the agent must have a proper marketing plan to expose the property to a higher number of potential buyers. Items such as deteriorated carpet, dated kitchens, older AC unit, and roofs may need to be addressed in order to draw in buyers. This is not the time for the agent to slack on their property marketing. When interviewing agents ensure that they include virtual tours, staging consultations, professional photos, video, and have a solid plan to market your home. In some cases, seller concessions to the buyer may be necessary. 

Builder Confidence
Builders have been working to meet the demand of the housing market. Now with a more balanced market they are more apt to offer design incentives, interest rate buydowns, and waive premium lot fees. It is important that your agent accompany you to the builder at the first visit. A good agent will navigate the incentives, builder contract, and stay in touch throughout the build process with updates.

Could There Be Downsides?
Interest rates are a bit higher now than in the past several years and housing prices have also increased dramatically. It is important to talk to a lender first to find out what the best mortgage product may be. Also, closing costs need to be factored in. Your agent can work to negotiate closing costs on the purchase of your home with the seller if necessary. If you need to sell in order to buy the home of your dreams it is important that your agent develop a plan since your days on market to sell may be longer than in the last several months.

The right plan

Now more than ever it is important to have the right agent that understands the market and your goals. In some cases, the right offer includes the right terms and not necessarily the highest possible price. While your return on investment is important and so is maximizing your value, there are other factors to consider. In some cases, having an extended closing timeline with a cash offer may save you from having to lease back your current home, double moves, and the cost of a short-term rental. Simultaneous closings on your new home with less risk from your buyer. Does your buyer have the financial stability to close? What other factors go into making the sale of your home smooth while still bringing you a high return. If you simply want to get the highest return possible on your home, we can make that happen as well. As a buyer, we navigate the market for you and ensure that you are exposed to all available homes within your criteria. We develop strong negotiations based on your needs. We are here for you. Contact your AZ Real Experts today for a personalized marketing plan that will leave you completely satisfied at closing.