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Balanced Market Emerging in Phoenix Retirement Communities

Balanced Market Emerging in Phoenix Retirement Communities. Scale showing a balanced real estate market.

Phoenix Retirement Community Market Report, April, 2024

A balanced market has been a long time coming. Ever since the Covid-19 pandemic, inventory has been low and prices have risen in this seller market. The tides now look to be turning as inventory and days on market are increasing. This coupled with high mortgage interest rates mean homes sit on the market longer. There is more competition amongst sellers to price their home at market value. Buyers have more choice and negotiating power. A balanced market is emerging in Phoenix retirement communities between buyers and sellers. So lets dig right in to learn more.

Let’s look at months inventory for the top 11 Phoenix retirement communities I work in. You will see a balanced market emerging with some communities still in moderate to slight seller markets. Victory at Verrado at 6 months inventory is in a balanced market. Sun City Festival and Sterling Grove are currently in a buyers market.

Which communities are in a Buyer or Seller Market?

The table below indicates months inventory by community. It also tells you if the community is in a balanced, buyer or seller market.

RETIREMENT COMMUNITIES
MONTHS OF iNVENTORY
BUYER OR SELLER MARKET-
Sun City
3.4
Seller
Sun City West
4
Seller
The Grand
4.3
Seller
Trilogy at Vistancia
4.5
Seller
CantaMia
4.6
SIight Seller
Arizona Traditions
4.7
Slight Seller
PebbleCreek
5.1
Slight Seller
Corte Bella
5.2
Slight Seller
Victory at Verrado
6
Balanced
Sun City Festival
9
Buyer
Sterling Grove
16.8
Strong Buyer
Copy Right 2024
Sharon Rowlson
SharonRowlson Logo www small Balanced Market Emerging in Phoenix Retirement Communities
**A balanced market between buyers and sellers is 6 months of inventory.
***Info deemed reliable, but not guaranteed.
Balanced Market Emerging in Phoenix Retirement Communities 3

Understanding the Balanced Real Estate Market: A Guide for Buyers and Sellers

The real estate market is a dynamic landscape, influenced by various factors such as supply, demand, and economic conditions. Two terms frequently thrown around are “sellers’ market” and “buyers’ market.” But what about the elusive “balanced market”? In this blog post, we’ll delve into what a balanced market means, its impact on real estate, and how you can navigate it whether you’re buying or selling a home.

What Is a Balanced Market?

A balanced market occurs when the number of homes available for sale roughly equals the number of active buyers in the market. It is typically a 6 months supply of inventory. In this scenario, neither buyers nor sellers hold a significant advantage. Let’s break it down:

  • Buyers: In a balanced market, buyers have a reasonable selection of homes to choose from. They can explore various options without feeling rushed or pressured.
  • Sellers: Sellers can expect a fair price for their property. While not necessarily a feeding frenzy, they won’t struggle to find interested buyers.

Key characteristics of a balanced market include:

  1. Stable Inventory: The supply of homes matches demand, resulting in a stable inventory level.
  2. Reasonable Time on the Market: Homes don’t languish for months, nor do they vanish within hours. Instead, they stay on the market for a moderate duration.
  3. Consistent Prices: Home prices remain steady or experience gradual growth.

Impact of a Balanced Market

A balanced market has several effects on the real estate industry:

  1. Supply and Demand Balance: The equilibrium between available homes and active buyers ensures stability. Predictable trends emerge, benefiting both parties.
  2. Favorable for Buyers and Sellers: Buyers enjoy ample choices, while sellers receive fair compensation for their properties.
  3. Longer Time on the Market: Homes take longer to sell, requiring patience from sellers. Flexibility in pricing strategies becomes essential.
  4. Reduced Competition: Buyers face less intense competition, making the process less stressful.

Navigating a Balanced Market

For Buyers:

  1. Be Patient: Take your time. Homes linger on the market, allowing you to weigh options.
  2. Stay Flexible: Sellers may not be in a hurry to sell. Be open to negotiations and adapt your pricing strategy.
  3. Work with a Professional: A knowledgeable real estate agent can guide you through the balanced market.

For Sellers:

  1. Set Realistic Expectations: Understand that your home won’t fly off the market instantly.
  2. Price Strategically: Be flexible with pricing to attract buyers.
  3. Leverage Professional Help: An experienced agent can assist you in navigating the balanced market.

Remember, a balanced market provides stability—a solid foundation for sustainable growth. Whether you’re buying your dream retirement home or selling your current one, understanding market dynamics is crucial. Happy house hunting!

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