Buy or Rent in 2023 in the Phoenix Arizona Market?

The real estate market in Phoenix, Arizona has been experiencing a steady growth in recent years and many potential buyers and renters are wondering what the future holds for them. As we approach the mid point of 2023, the question on everyone's minds is whether to buy or rent in the Phoenix Arizona market. In this article, we will discuss some factors that may help you decide.

For Buyers:

One of the biggest factors to consider when buying a home in Phoenix is the cost of living. With the housing market still booming, housing prices are expected to continue rising, which could make it more difficult for some buyers to afford their dream home. However, there are still affordable options available, especially for those willing to look outside of the city center.

Another important factor to consider is the mortgage rates. While mortgage rates have climbed in the last year, many of the fairweather buyers have decided to sit on the sidelines. If you can find a home that makes sense for you at the current interest rates, you may be able to get the home under contract more easily due to this decrease in buyers. Many lenders and experts expect rates to decrease over the next year or so, and when that happens it is likely that it will trigger a flood of new buyers (and competition) flooding the market.

Many of the buyers we work with have shared that while they are frustrated that interest rates are so high, they are egar to lock in their housing expense with a 30 year mortgage so they don't have to deal with their land lord raising their rent year after year.

For Renters:

Renting in Phoenix can be a great option for those who are not quite ready to commit to buying a home. With a variety of apartments and rental homes available, renters can find a place that fits their lifestyle without the added pressure of a mortgage.

However, renters should also be aware that rental rates are also on the rise, and may continue to do so in the coming years. This means that it may be more difficult to find affordable rental options, especially in desirable areas.

Real Estate News:

One thing that both buyers and renters should keep an eye on is the real estate market in Phoenix. With the ongoing economic uncertainty, it's important to stay informed about any changes that may affect the market.

For example, a recent report from Zillow found that the average home values in Phoenix is up by 4.3% over the last year. This means that home buyers may face steeper competition, while renters may have fewer affordable rental options.

Lifestyle:

Finally, another important factor to consider when deciding whether to buy or rent in Phoenix is your lifestyle. If you're looking for a long-term investment and stability, buying may be the better option. However, if you're not quite ready to commit to a particular area or lifestyle, renting may be the better choice.

Ultimately, the decision to buy or rent in Phoenix comes down to your individual circumstances and goals. By considering factors like cost of living, mortgage rates, real estate news, and your lifestyle, you can make an informed decision that works for you.