PHOENIX (AZFamily)<\/b> \u2014 The Valley housing market has about 22,000 houses for sale, and prices are dropping, according to a real estate industry expert.<\/p>\n
Sindy Ready, former president of the Arizona Realtor Association, said the current market conditions favor buyers, who now have more choices and negotiating power.<\/p>\n
\u201cFrom a buyer perspective, what\u2019s positive is you still have a lot more choices out there,\u201d Ready said. \u201cYou have more things to look at. It\u2019s not just that whole, see one house and fight over a house with five other people.\u201d<\/p>\n
Sellers adjusting to new market conditions<\/p>\n
Ready said sellers must be realistic about pricing if they want their homes to sell. Many sellers are now paying closing costs, helping buyers with expenses or offering price reductions to close deals.<\/p>\n
Some homes are sitting on the market for more than 150 days as prices continue to drop.<\/p>\n
Trump proposes ban on institutional investors<\/p>\n
President Donald Trump announced he wants Congress to ban large institutional investors from buying single-family homes, linking the move to affordability concerns. He also wants his administration to buy mortgage bonds to bring down interest rates.<\/p>\n
In the second quarter of last year, 33% of homes were sold to investors in Arizona. However, the majority of investors own only one to five properties in the state. Institutional owners account for just 2% of investor-owned homes.<\/p>\n
Ready said Arizona is a popular second home and investment market, and a congressional ban on investment buyers purchasing single-family homes could affect the local market.<\/p>\n
However, Ready said she doesn\u2019t think home prices would drop if those houses become available because the Valley currently has lower inventory and will face more demand.<\/p>\n
Contingency offers becoming more common<\/p>\n
For sellers looking to buy another home, Ready said the process can be tricky but not impossible. She noted that people are opening up to new ideas to get deals done.<\/p>\n
\u201cInterestingly enough, in our market today, a contingency offer meaning a house is being sold contingent on the sale of your other home that is pretty common and it used to not be something sellers would consider, but they like to see the house under contract,\u201d Ready said.<\/p>\n
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