The real estate market in the Valley is thriving, currently listing around 22,000 homes for sale. However, falling prices have become the prevailing trend. Experts confirm that these conditions now favor buyers, providing them with more options and stronger negotiating power.
Cindy Ready, former president of the Arizona Association of Realtors, believes buyers will benefit significantly, stating that the current situation gives them a wider range of choices and reduces competition compared to the past, when a buyer often had only a single option to compete with others.
Sellers Adapting to the New Market Reality
On another note, Ready pointed out that sellers need to be aware and realistic regarding home pricing if they want to sell quickly. It has become noticeable that many sellers are making concessions to attract buyers, such as covering closing costs, helping with certain expenses, or even offering attractive discounts to close deals. Nevertheless, the challenge persists, with some homes remaining on the market for more than 150 days without a buyer.
Trump’s Proposals on Investment Markets
Meanwhile, President Donald Trump announced that he would like Congress to take measures to prevent large institutional investors from purchasing homes intended for families. This proposal aims to address concerns over rising housing costs and to prioritize families. Trump also expressed his desire for government intervention to buy mortgage-backed securities to help lower interest rates.
Although data showed that in the second quarter of last year, 33% of homes in Arizona were sold to investors, the figures indicate that most of these investors own fewer than five properties. Large institutional investors account for no more than 2% of investor-owned homes in the state.
In response to this proposal, Ready noted that Arizona is a popular destination for second homes and real estate investments, and imposing restrictions on investors could have market repercussions. However, she doubted it would have a significant impact on prices, especially given the limited supply and high demand in the region.
Conditional Purchase Agreements on the Rise
Amid the ongoing market changes, another trend has emerged: the growing popularity of “conditional sale offers,” where buyers require the sale of their current home before completing the purchase of a new one.
Ready commented on this phenomenon, saying that it is now more widely accepted than in the past. Previously, sellers often ignored such offers, but under current conditions, they are now considered a practical and welcomed option.
Despite the fluctuations in the real estate market, the upcoming phase appears to open new windows of opportunity for buyers and calls for greater flexibility from sellers.
