The “total” housing supply of homes for sale in the Phoenix Metro region is well down from last year, which on the surface would seem to be not great news for buyers and good news for sellers. All of that decline, however is in the price ranges below $225,000, as illustrated by the chart below, which is for all areas & types:
Above the $225,000 price range, we now have more supply than at this time last year. Sellers should therefore be careful not to over-estimate their bargaining power if they are priced over $225,000. This is particularly true of price ranges over $1 million where demand has become much weaker since August.
This is encouraging news for buyers looking to purchase above $225,000. There is more supply available now than at this time last year in all the other price ranges. If you’re looking under $225,000 you will find that the selection is increasingly meager the lower your price range is below $225,000.
No matter the price range buyers, make sure that you’re pre-approved for a loan if you need one. The nicest homes no matter the price range are most often contested by other buyers.