When Is the Best Time to Buy a House in Phoenix?

✏️ Editor’s Note: Realtor Associations, agents, and MLS’ have started implementing changes related to the NAR’s $418 million settlement. While home-sellers will likely save thousands in commission, compliance and litigation risks have significantly increased for sellers throughout the nation. Learn how NAR’s settlement affects home buyers.

A total of 36.2% of homes sold for less than the listing price in Phoenix, AZ in September 2023. This shows that agents are currently willing to negotiate and reduce their commission. So, this could be a good time to buy a house in Phoenix.

Moreover, the popular 30-year fixed mortgage has recently hit a 7.04% interest rate in Arizona. It is likely to increase even further. So if you want to buy a home, capitalize on current mortgage rates. You can refinance your home once the rates reduce in the future.

Why should you buy an Phoenix, AZ house now?

In September 2023, homes in Phoenix sold for 98.7% of their listed price. This means that sellers are willing to negotiate and offer discounts.
The GDP of Arizona grew by 5.3% in 2022. This shows that real estate property investment is a beneficial option for potential home-buyers.
The number of homes sold in Phoenix has decreased by 28.37% between May and September 2023. This reflects reduced competition among buyers. They also have a greater scope to find the properties that suit their requirements.

What Are the Best Months to Buy a House in Phoenix?

September to December are the best months to buy a house in Phoenix. You can take advantage of favorable home offers. Moreover, you get the opportunity to negotiate home prices due to less competition.

In case these months do not align with your financial goals, here is our list of the best months to purchase a house in Phoenix:

Month	Best For	Average Median Price
November	Discounted Prices	$410,000
April	New Listings	$425,064
August	Competitive Prices	$440,000

Which Is the Best Season to Buy a House in Phoenix, AZ?

Fall is the best season for a low-on-cash home buyer wanting to buy a house in Phoenix. Sellers are less demanding due to the low availability of buyers. Moreover, they wish to sell off and settle elsewhere before the school year begins.

If you are looking to buy a home, here’s what you get in each season:

Spring: The real estate market competition is high but open to lower asking prices. Home demand usually rises in this season.
Summer: Summer is the peak season with an active housing market and competitive buyers. There is also a better inventory for buyers to choose from.
Autumn: Fall has determined sellers who look to settle elsewhere before winter. That’s why they are open to negotiations and may accept lower asking prices.
Winter: Housing prices are at their lowest. The festive season reduces the competition in the housing market, so buyers may get better home offers.

Phoenix Housing Market Conditions

The current real estate market conditions are becoming favorable for home buyers in Phoenix. Here’s how:

Less Market Competition: The rates are at a record high of 7.04% in more than 20 years in Arizona. This has put many buyers out of the market and decreased the home-buying competition in Phoenix.
Lower Asking Price: There is a limited selection for buyers at this point. The existing home sales decreased from 1,829 in May to 1,310 in September 2023. This has forced the sellers to reduce the prices of their homes.
Flexible Decision-Making Opportunity: High mortgage rates make buyers cautious. In September, the average time houses spend on the market in Phoenix is at present 35 days.

Top Phoenix Home Buying Tips in 2024

Buying a house is an exciting experience. But, it can be stressful and confusing, especially if you’re doing it for the first time. Here are some tips to help you through it:

Check Your Credit Score: Check your credit score to determine your financing options. A good credit history can help you get the required score for lower interest rates.
Save for a Down Payment: To avoid paying private mortgage insurance, or PMI, you must keep at least 20% of the home’s purchase price as the down payment. Some mortgage lenders provide no-PMI mortgages with lower down payments but expect to pay a higher interest rate.
Get a Pre-Approval Mortgage: A pre-approved mortgage is useful when making an offer on a home because it gives you a better idea of your home affordability.
Find a Good Real Estate Agent: An experienced real estate agent in Phoenix can save you time and money. They understand the market and can fulfill your requirements.
Negotiate Repairs: A home inspection report may reveal significant or minor flaws. You need to ensure that the major issues are rectified before your loan is finalized. You can always take care of minor issues in future.
Always Do a Final Walk-Through: Do this diligently as this is your final opportunity to inspect the house. Ask questions, and address any outstanding issues before they become your responsibility.

» Steps to Buy a House in Phoenix: Here is a step-by-step guide to buy a house in 2024.

Is 2024 a Good Time to Buy a House in Phoenix?

With the current trend in the Phoenix, AZ housing market, you have a better chance of getting a profitable deal on your dream home now than in 2024. Here are some of our predictions:

Mortgage Rates will Increase: Mortgage rates may increase in 2024 due to economic factors, inflation, and changes in central bank policies.
It will be a Seller’s Market: The inventory is low and would benefit sellers by creating a seller’s market, potentially leading to quicker sales and higher prices.
Decrease in Competition: Increased mortgage rates deter buyers, reducing demand and competition in the housing market.

The Bottom Line: Is Now a Good Time to Buy a House in Phoenix?

Yes, this is the “best time” to purchase a house in Phoenix. However, your budget and credit score can influence this decision.

It also depends upon your ability to get a loan. Mortgage rates in Phoenix are rising. Fannie Mae also predicted that mortgage rates would go even higher in 2024. So, if you have the necessary funds, then purchase now!

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Frequently Asked Questions

How long does it take to buy a house on average in Phoenix?

Six months. This duration includes house hunting, getting a pre-approval mortgage, making an offer, negotiations, and closure.

When is the best time to buy a house in Phoenix?

The months from September to December are the best time to buy a house in Phoenix. However, the purchasing decision may depend upon your location and requirements.

What if there is a recession in US housing market?

The New York Federal Reserve says that there's a 56.12% chance that the United States might face a recession by September 2024. A recession might make it tough for people to purchase a house in an expensive city. This is due to job scarcity and reduced affordability.

However, if you have savings, it might be a good time to purchase a house in Phoenix before the recession hits.