Housing market reality check, home prices decreasing in Phoenix area

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After years of leading the nation in home price growth, the Phoenix metro is now dipping into the red, according to the latest S&P Corelogic Case-Shiller Indices, released April 25. MORE ⬇️

If you drive, you’ll notice “for sale” signs popping up across the Valley, but we know prices just aren’t as high as they used to be.“It’s been up for about three weeks now, give or take,” said Laura Scott, who is trying to sell her home in Sun City West, adding it has a lot to offer.She says they’ve gotten a lot of activity on the listing, but still no offer, even weeks after being listed.When asked if she would take an offer below the asking price, Scott replied, “Depends on the offer.

Economy expert Luis Cordova with Rounds Consulting Group says she’s not alone, given the Phoenix metro has seen a 2.1% slide in year-over-year home price growth. It has now joined seven other metros across the country in the same boat including Denver, Las Vegas, Los Angeles, Portland, San Diego, San Francisco and Seattle.“It absolutely has to do with the Fed interest rate hikes,” Cordova said.“The main reason why home prices are going down is because homes are staying on the market for longer, so that’s why sellers are lowering their prices to get people to buy,” Cordova said.

We asked when can we expect to be under another recession, and Cordova responded, “So, we still think a recession is likely next year. We do expect prices to continue to decrease a little, but nothing like the housing collapse of 2008."There is a lot of demand, but not enough homes to fill it. “For sellers, it’s still a pretty good market compared to what it was two or three years ago. But for buyers it is more expensive, so they are getting less for their buck,” said Cordova.“It would be wonderful if someone came in, fell in love with it, and paid full price,” Scott told ABC15.

 

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