Economics 101 – Supply & Demand

The Arizona housing market has been experiencing a surge in demand over the past few years, with more and more people moving to the state for its sunny climate, job opportunities, and affordable cost of living. However, this increase in demand has also led to a shortage of available homes, which has driven up prices.

Despite the high interest rates on mortgages, homes are still selling in Arizona. This is due to several factors, such as job growth, population growth, and desirable locations. Many buyers see purchasing a home in Arizona as a solid investment, as property values are likely to continue rising in the future.

To justify the value of homes in the current market, sellers may adjust their prices to reflect the current supply and demand dynamics. They may accept lower offers than anticipated to attract buyers and close a sale, even though interest rates are high. This means that homes can still be sold despite higher interest rates, as long as the price is set at a reasonable level.

Overall, while higher interest rates may have some impact on supply and demand in the Arizona housing market, other factors such as job growth and population growth are helping to mitigate their effects. If you’re considering buying or selling a home in Arizona, it’s important to work with a knowledgeable real estate agent who can help you navigate the current market conditions and make informed decisions.

If you have any questions on how to properly price your home. Lets chat!