By Shelley Sakala
From Norterra to Anthem, home buying and selling is picking up. After a major slump in 2022’s third and fourth quarters, optimism in the local housing market is growing among buyers and sellers. The area has seen a 38% increase in home searches since last quarter, along with a 3% jump in mortgage applications. These numbers are expected to keep trending upward. This is encouraging, as this is just the start of our peak real estate season which kicks off in early spring.
Listings throughout the zip codes of 85085 and 85086 have started to get more showings and even multiple offers at certain price points. The current surge in buyer and seller interest is reflective of overall recovery efforts after months of economic strain due to the global pandemic and signals an active upcoming home buying season. As more potential buyers enter the market looking for their dream homes, local real estate agents are reporting an influx of listings as those already living in the area look to capitalize on better-than-expected demand.
Several factors have contributed to this trend, including improved consumer confidence around buying a home, meaning they are over the sticker shock of the spike in interest rates. Also, increased employment opportunities from companies such as the Taiwan Semiconductor Manufacturing Company are driving migration into the Phoenix area. The construction and operation of the TSMC plant will create thousands of jobs including positions for engineers, technicians, and other skilled workers. But that isn’t all, the plant is attracting other technology companies to the area, which could create the growth of a high-tech ecosystem and increased economic activity.
At the same time, the average sales price is up 6% compared to the end of 2022 in our North Phoenix area––also driven by a combination of supply constraints due to limited listings and higher demand associated with an influx of buyers looking to take advantage of extremely favorable conditions. Additionally, interest rates are down nearly 1% from the highest peak we saw in 2022. Buyers that had been waiting are now jumping back into the market for their next home.
Overall, it appears that our North Phoenix community’s unique combination of affordability, convenient location, and desirable landscape are still bringing people to the area. New workers and businesses will bring more demand for local service industries like restaurants and shopping. With this newfound enthusiasm in our area, buyers and sellers can expect another strong showing in area activity this year.
Shelley Sakala is a local realtor and owner of The Sakala Group Real Estate.
