By Catherine Reagor | Arizona Republic
Metro Phoenix home prices ticked up in November.
But the Valley’s housing market is ending 2023 on a pretty flat note despite interest rates inching down. After its roller coaster ride during the past few years — with spiking home prices and sales and then last year’s slowdown — that’s not a bad thing.
Phoenix-area home sales were down last month, and so is supply.
Housing analysts are calling metro Phoenix’s housing market balanced, which means it doesn’t favor sellers or buyers.
Higher mortgage rates put the brakes on metro Phoenix’s frenzied housing market in mid-2022, but rates started dipping in December.
Still, home prices and sales are expected to fall a bit in December, which is typical for the holidays.
Lower home loan rates could give the market a boost in the new year, say housing experts.
Higher loan rates and prices, as well as too few listings, are keeping many potential buyers on the sidelines.
The monthly mortgage payment on an average U.S. home has jumped more than 50% during the past few years, due to higher prices and interest rates.
The jump has priced many younger buyers out of the housing market, said housing analyst Tom Ruff with The Information Market.
Many millennials and Gen Zers missed the low mortgage rates and own only about 10% of real estate in the U.S., said Ruff citing a Creditnews report.
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