In Maricopa County, Arizona, home buyers are starting to see a slight advantage in the real estate market after the buying frenzy of the pandemic era. Competition has decreased, and buyers are now able to negotiate concessions from sellers. The market has calmed down since the Federal Reserve began raising interest rates to combat inflation, leading to a decrease in sales and longer days on the market for homes.
Despite a slight increase in prices over the past year, sellers have not significantly reduced their prices, leading to slower sales. The median sales price in September was $475,000, 58% higher than at the start of 2020. It is now difficult for many households to afford a home in Maricopa County, with a median annual income of $87,000 required to afford the typical home.
Rental properties in the area are also struggling, with higher rents than four years ago and increased evictions in 2022. Homelessness remains a significant issue, with 9,435 residents living in unstable housing as of January.
Overall, the real estate market in Maricopa County has shifted to a more balanced state, with decreased competition and longer days on the market. Buyers are able to negotiate with sellers, but affordability remains a challenge for many households in the area.
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