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PHOENIX – Phoenix is consistently ranking in several reports as one of the hottest housing markets, and it has been for months, but experts say we're starting to see some leveling out of the market.
"There is no doubt that we are in a market shift," says Somone Wilder, real estate agent with Hague Partners
Most brokers and agents are starting to notice the hot Phoenix housing market shift ever so slightly.
"Over the past couple of years, sellers have had a major advantage in the market, primarily due to the inventory being really low and interest rates being really great which was drawing buyers into the market," Wilder explained.
Homebuyer Arya Chowdhury can attest.
"It took me approximately 11 months to close in on my house which was November 2021. It took so long because every time a house would be listed, I was interested. I would even put in an offer and then it was gone. Just disappeared," Chowdhury said.
We've seen multiple interest rate hikes by the Federal Reserve already this year. The latest, 3 quarters of a percent in June, the biggest hike since 1994, with an end goal of trying to curb inflation.
Mortgage rates are reacting, according to a report from Zillow. Rates across the country are now averaging 5.78%. And a rise in mortgage rates means it's taking some players out of the game and houses are sitting on the market in Phoenix a little longer.
"What has happened is that there are more homes on the market, so now the demand and the supply are starting to balance. As a balance starts to happen, now buyers and sellers have equal leverage when they're negotiating a deal for a house," Wilder said.
As Chowdhury closes on her second home, she has advice for anyone else trying to navigate a challenging housing market.
"Not just focusing on this moment but what is it going to look like in 5 years, in 10 years, and then consider that into planning when you're making such a big purchase," she said.
MORE: Federal Reserve Chair Jerome Powell says rate hikes to be decided 'meeting by meeting'
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