After a year of record-high interest rates and challenges posed from limited inventory, the Arizona Association of Realtors are optimistic as they look ahead to a promising year for housing in the Grand Canyon State marked by steady developments that will benefit both buyers and sellers.
Shelley Ostrowski, 2024 Arizona Association of Realtors president and designated broker for Realty One Group Gateway in Yuma, predicts an interest rate decrease that will bring a resurgence of buyers into the market in search of their dream home.
“I see more buyers coming back into the market as interest rates begin to settle,” Ostrowski said. “The housing market will remain strong in 2024, emphasizing the importance of clear communication and why buyers and sellers are best trusted to use a (real estate agent).”
Sindy Ready, 2024 president-elect of the Arizona Realtors and associate broker for RE/MAX Excalibur in Scottsdale, also anticipates an interest rate decrease as 2024 progresses, initiating more activity in the market.
“As the weather heats up in Arizona, so will the market,” Ready said. “While inventory might be lower than usual at this time, interest rates are speculated to decrease by the end of the second quarter to a historically normal rate of 6% to 6.5%, which will bring more buyers into the market.”
Ready also points out the strain on home inventory in the Valley over the last year, which has been impacted by a few different factors, including the increased relocation of technology factories to the state and homeowners who have opted to stay in their current property due to their lower interest rates – many of them being baby boomers.
And while the impact of the aging population on the real estate market has many housing experts predicting a “silver tsunami” in 2024 marked by the downsizing of the baby boomer generation, Ready notes some of the key details she has noticed locally that could prevent this shift.
“Many baby boomers in today’s housing market are rightsizing as opposed to downsizing, meaning they are searching for a different floor plan or a level property that accommodates their lifestyle,” said Ready. “This means simplifying backyard maintenance and introducing trendy new features to the home, such as an outdoor kitchen, fire pit and seating area.”
Despite current inventory strain, Ready foresees an optimistic 2024 for housing as interest rates drop, opening the door for more first-time millennial and Gen Z home buyers to enter the market.
Similarly, Shane Cook, 2024 treasurer of the Arizona Realtors from eXp Realty in Gilbert, also foresees a retreat in interest rates that will in turn stimulate the market, tipping slightly toward the seller.
“I expect interest rates to retreat some, which will create more buyer demand,” said Cook. “With inventory now in short supply, this could mean a potential impact on the market that continues to be more favored to the seller.”
With the spotlight on the Valley as a continued hot real estate market and as a destination for some of the top events of the year, such as the 2024 NCAA March Madness tournament, Waste Management Phoenix Open golf tournament and other notable events, Lisa Paffrath, the 2024 first vice president of the Arizona Realtors and the broker/owner of Better Homes and Gardens Real Estate Grand View North in Flagstaff and Williams, advises homeowners and potential buyers and sellers to stay alert of any potential housing scams before they escalate.
“As (real estate agents), we remain vigilant in bringing attention to any emerging and innovative scams that homeowners might come into contact with,” said Paffrath. “These potential housing scams stress the significance of relying on a trusted (real estate agent) when you are buying or selling a home today.”
To protect yourself and your property from the threat of a scam, Paffrath recommends actively monitoring any early warning signs online by regularly searching your address and by setting up search alerts that will notify you when online activity containing your address is detected.
For more information, visit aaronline.com.
