Now is the time to sell your Phoenix home
Buying? Do it now.
PHOENIX (3TV/CBS 5) – If you plan to sell a home in the Phoenix area, now is a great time. If you’re buying, do not wait. That’s the bottom-line advice of 72Sold founder and owner Greg Hague. He joined Scott Pasmore on “Good Morning Arizona” Thursday to talk about what we can expect in the real estate market in the coming months. Economists say we’re heading for a recession in the next couple of years but do not expect the housing bubble to burst.
With more and more people moving to the Phoenix area, the housing market is red hot. Hague said price appreciation is up a little more than 20% over the past year. “One ZIP code, in particular, went up over 40%,” he said. That’s Paradise Valley – 85253.
“Interest rates have gone up over 2% this year,” Hague said. “The average homebuyer, compared to six months ago, is paying about double the interest on a home…, which is making homes less affordable.”
“Don’t sell because you’re afraid the market is going to turn down, that you’re going to lose money,” he said. “Don’t sell because you’re afraid. Sell because you have a reason for selling. … If you have a reason for selling -- that isn’t out of fear -- you really should sell now.”
The Federal Reserve has said there will be six more rate increases this year. Hague said you’ll have fewer potential buyers in the coming months because those increases will make your home less affordable. “If you have a reason for selling, it’s a great time to sell as compared to in three months.”
If you are going to sell, it’s a good idea to have your next home locked in as much as possible so you’re not scrambling to find a place to rent. But not knowing where you’re going doesn’t have to be a deal-breaker. Hague said 72Sold has a program that allows you to stay in your home for up to six months after it has sold to give you time to iron that out. “There’s a lot of that out there right now to give people the time to find their next home,” he explained. “It’s hard to buy a home if you haven’t sold because no seller wants to take an offer contingent on your home selling.”
While some are concerned that the housing market is going to crash like it did in 2008, Hague said it’s not likely. “The problem right now in housing is not too much demand; it’s not enough supply. There is so little supply that regardless of what the Federal Reserve does, regardless of how interest rates go, don’t be afraid the housing market is going to crash because it’s not.”
He also said home values will continue to go up, and homes will continue to become less affordable as interest raise go up. “In my view, if you’re thinking about buying, buy. Buy now.”
More stories about the Phoenix-area housing market
Copyright 2022 KTVK/KPHO. All rights reserved.