Our housing market has been anything but normal for the past few years which makes it harder to predict what is going to happen in future months.
We used to look at the market trends, seasonal changes, and the current market conditions to help predict where the market was heading, but now there are many different factors controlling the housing market that we haven’t seen before. Just look at what happened last year when the sudden spike in interest rates in May 2022 turned our frenzied market into a buyer’s market almost overnight.
So, what does all this mean for the summer months? Is the summer a good time to list your home? Absolutely. One of the main reasons for me is that none of us really know what the future is going to hold.
At the end of last year, the media was hyping up that we may be heading into another housing crash and prices were going to plummet. We did have a correction but nothing as dramatic as everyone was making us believe and all the indicators point to a continued imbalance between supply and demand, keeping us in a seller’s market. On the other hand, the fluctuating interest rates have started to play a big role in how the housing market moves as well as with both buyers’ and sellers’ reactions. Fall and winter are the slowest seasons, so if you plan to sell in 2023, summer is a good time to list.
SELLING A HOUSE IN THE SUMMER
June is still a pretty strong month but as we head into the hotter summer months typically sales start to slow, however, there is not as big of a decline as you might think, and the summer is still a good time to sell your home. Our peak is still springtime when Arizona is booming with all the snowbirds and winter visitors flocking to our state
and is the prime time for the second home market. Local buyers with children tend to purchase in late spring to early summer so they can move when their children get out of school at the end of May and before school starts in August.
WHY THIS SUMMER MAY BE DIFFERENT
There are several reasons that may make this summer a great time to list your home.
All the buyers who put their buying on hold last summer through the end of the year are now coming back into the market, increasing demand.
Although supply is still higher than it was at this time last year, we are seeing it decrease each month. With so many homeowners sitting on mortgages in the three percent or even two percent range, they aren’t going to move unless they have to. So, we are seeing an increase in demand and a decrease in our already way undersupplied inventory
RELOCATION BUYERS
Phoenix is ranked one of the top cities for job growth and Maricopa County leads the nation in population growth. According to the US Census Bureau, Maricopa County remained the largest-gaining county in the nation, adding 56,831 residents in 2022, a gain of 1.3 percent since 2021. We see a lot of relocation buyers in the midst of our summer heat trying to find a home to move the family to as soon as school is out — which isn’t until mid-June in other states and before our school year starts in August.
LESS COMPETITION
Many sellers still consider the summer to be a bad time to sell and don’t list in the summer or cancel their listings once the summer hits. With less inventory that means less competition, which is always a positive for a seller. So, while there may be fewer buyers searching for homes there will also be fewer homes on the market.
MORE SHOWINGS WITH SERIOUS BUYERS
There is also a great advantage of having fewer showings. While you may think less showings means it will take longer to sell, that is not necessarily the case, especially in the summer.
here are fewer showings because the lookie-loos aren’t going to go window shopping when it’s 115 degrees outside. Instead, you will get the serious buyers. These are the buyers who have to find a home as quickly as possible — this is especially true for relocation buyers. They will narrow their searches to only the homes at the top of their list to keep the process as short as possible.
BETTER PRICING
Another advantage to selling during the summer is prices have increased. The median sales price has increased each month since December and is expected to continue to increase through the peak spring selling season. When you go to list your home, you will use comparable properties to find the market value of your home. The higher comparable means the higher you can list your home as well as there being good comparables the appraiser will use when it’s time for the appraisal. If you are thinking of selling and would like more information on listing your home in the summer, please don’t hesitate to contact me.
Lorraine is a Multi-Million Dollar producing agent, has been a full-time Realtor for over 13 years, is an Associate Broker of KOR Properties, a Certified Negotiation Specialist, and is on the Professional Standards Board. You can reach Lorraine at (602) 571-6799.