Jan 3, 2023 - Real Estate
Phoenix home prices will remain solid in 2023, experts say
Local experts predict 2023 will bring more shifts to the Phoenix-area market. Here’s what they’re saying:
1. Home prices will keep increasing.
Andrea Crouch, president of Phoenix Realtors, projects home prices in Arizona will increase by 10%, while the number of sales decrease by about 12%-13% compared with 2022.
- "It’s important to realize that the housing market is cyclical," Crouch tells Axios. "Prices are still solid and holding their ground, though slower than projected."
2. Buyers will have more options.
Properties are taking a bit longer to sell, and there’s no onslaught of 10 offers being received in two hours, says Sheryl Bowden, vice president of Phoenix Realtors.
- "Buyers have and should continue to have a choice of properties to purchase along with some wiggle room, which could include sellers paying buyer closing costs, price decreases and property repairs," Bowden tells Axios.
3. Mortgage rates will play an essential role.
The rapid shift in Phoenix from a strong seller's market to a buyer's market was mainly fueled by buyers balking at high interest rates, says Butch Leiber, president-elect of Phoenix Realtors.
- "If interest rates continue to fall, expect buyer activity to pick up quickly, as demand for homes has not really diminished," Leiber tells Axios. "When buyers return to the market, it could cause a quick shift back to a seller's market."
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