Market Update and a Little about Surprise

For the last few years Phoenix has been in a seller’s market and as a whole has been in a balance market since August, but it is now expected to start sliding into a buyers market valley wide. In the Phoenix Metro, active listings have gone up 162.8% and there are 20,751 active listings. Current listings under contract is only 6,559 which is down 44.5% from last month, but the monthly median sales price has gone up 4.4% to $435,000.

In October, 44% of October sales involved sellers paying concessions to the buyer, but since these concessions are not recorded with the sales price it’s common to see a buyer offer a higher price in exchange for closing cost assistance or a rate buydown. Mortgage rates have stabilized between 7.0% and 7.3%, and if you’re a buyer waiting for the market to bottom out before purchasing please keep in mind that the top or the bottom of a market only becomes apparent about 3 or 4 months after the contracts are written. You may be too late to the party if you’re waiting for an obvious sign that prices have hit the lowest they will go. 

If you’re looking to sell, even though the market is heading towards a buyer’s market and the cost to sell is increasing, the majority of sellers are still walking away from their transaction with a profit. For homes owned for 2 years or more, positive appreciation rates are rising, and based on sales price per square foot through the MLS are: 2 years: +33.6%, 3 years: +59.9%, 4 years: +68.1%, 5 years: +84.8%. There is a chance that through next year those rates may turn negative. Many buyers are on the fence or hesitant to make a large purchase when there are many uncertain situations happening, i.e. dramatic fluctuations in mortgage rates, unemployment, and general insecurities surrounding inflation, but if mortgage rates do fall many of those buyers will get off the fence.

Surprise, is in the North West quadrant of the Phoenix Valley, known for its entertainment centers, Spring Training baseball, and beautiful mountains and even a regional lake. According to the 2020 census, Surprise has a population of 143,148, with a large contributor of that being the many retirees who have moved to Sun City Grand, a 55+ community that mimics Sun City and Sun City West. Surprise entertainment for all ages throughout the seasons, during the summer the Surprise Aquatic Center, or an indoor entertainment venue, Uptown Alley, and the largest tennis and racquet complex in the southwest. During the spring Kansas City Royals and the Texas Rangers practice at the Surprise Stadium.

Surprise also hosts 20 different golf courses to choose from, a few of which are some of the most sought after courses in the greater Phoenix. If you’re looking for more rugged entertainment the largest regional park in Maricopa County is right in Surprise, White Tank Mountain Regional Park, with over 30 miles of shared-use trails and with nearly 30,000 acres of ridges and canyons. 

Surprise, is currently in a slight seller’s market, the median list price at about $460,000 and approximately 698 homes on the market. If you have any questions of what buying a home or selling a home may look like to you in Surprise or any other area of the Phoenix Valley, give Garcia Group a call today!