By Frank May, Real Estate Agent
After being in real estate for over 20 years, I would have to say that 2023 (and the last half of 2022) was a strange time for the market. It wasn’t as bad as the period between 2008 to 2010, but it was certainly unusual!
The increase in interest rates during the latter half of 2022 and into 2023 left buyers in a void, uncertain about their options. Many were priced out of the market when the rates jumped to over 5% in less than a year! Despite fewer buyers causing prices to drop, the monthly payments were still higher due to those elevated interest rates.
I just looked back at a floorplan in the Meadows that sold in April 2022 for $607,000, and less than a year later, the same floorplan sold for $510,000! The good news is that prices have started to rise again since hitting their lowest point. That same floorplan sold for $555,000 just a couple of months ago. This recent increase in value occurred before a significant drop in interest rates of about 0.75% in December, which should enable more buyers to qualify and potentially drive prices up even further. Great news for homeowners!
Many homeowners have been hesitant to sell, not wanting to swap their 3% (and sometimes even lower) interest rate for an 8% rate. As interest rates continue to fall, we anticipate more sellers will enter the market, increasing inventory, which is currently in short supply. Buyers will have more options, and sellers will need to keep their homes as ‘model-like’ as possible to attract these buyers and further increase their property’s value.
We all know the TSMC plant has been bringing good jobs to the area, but as you can read on the following page of this paper, a company named Amkor will be building a $2 billion site near the Commercial Core at Vistancia. This development will bring even more well-paying jobs to our area. People from around the country and the world are starting to recognize Peoria and are eager to move here!
Our community continues to grow in desirability with more businesses coming to Peoria and Northern Glendale. Stay informed with Katie at UWSPHX.com and on Facebook at facebook.com/upperwestsidephx, as she shares all the latest business news!
If you’re considering selling, please reach out, and we can start developing a plan tailored to your timeframe. Whether you’re thinking of selling in a month or in two years, we’ll ensure you’re prepared when the time is right. Also, if you ever need an agent in another city or state, let me know. I am connected with some of the best agents worldwide and can refer you to someone knowledgeable, trustworthy, and experienced in your desired location.
And I almost forgot… Happy New Year! May this year be blessed for you all!
Frank May grew up in the Valley, graduating from Northwest Christian School and Northern Arizona University. He is a real estate agent with RE/MAX Fine Properties and has been helping both buyers and sellers for over 20 years. He has been a Dave Ramsey Endorsed Local Provider (ELP) since 2003. Learn more at mayteam.com.