Sellers’ grip on metro Phoenix’s housing market is starting to slip.
The supply of Valley homes for sale has steadily been climbing for the past few months, giving buyers worn out by bidding wars and new monthly home price records a better chance to close on one.
Drops in listing prices are on the rise too.
Valley home listings are up almost 43% since late February, according to The Cromford Report. And price reductions in homes listed for sale have jumped 102% since mid-February.
It’s also taking a couple days longer for Valley homes to sell because buyers have more choices.
“We are seeing a shift from an extreme sellers’ market,” Tina Tamboer, senior housing analyst with Cromford, told hundreds of real estate agents at Bobby Lieb’s HomeSmart Elite meeting last week. “It’s still a sellers market, but buyers should have a little more hope.”
She said home prices won’t fall as the market gets back in balance, but they also won’t keep appreciating at 3.5% a month.
Tamboer emphasizes markets conditions can change quickly, and she is not making long-term predictions.
Best metro Phoenix areas for buyers
Anthem in northwest Phoenix is seeing the fastest shift away from a sellers’ market, according to Cromford.
Tamboer said demand and supply could be back in balance in Anthem within the next five weeks, and sellers should take that into account when pricing their homes.
Farther-out metro Phoenix communities are expected to shift from giving sellers the upper hand the fastest.
Here is a look at what areas will strike a balance between supply and demand first, and how long it is expected to take, based on listings and sales: