A combination of factors could slow down increases in the costs of home buying in Arizona.
According to the state’s Office of Economic Opportunity, the number of homes on the market in the state hit 23,719 . That’s the highest inventory amount since mid-2019.
Combine that with the Federal Reserve Board increasing interest rates, and the agency’s Doug Walls said all of these factors are working together to suppress prices.
“If there's more inventory, buyers can be a little bit more selective. And if houses are on the market longer, buyers can also potentially take advantage of that if sellers are needing to sell," Walls said.
Walls added that the results are beginning to show as the S&P home price index for Phoenix showed just a point-seven-percent month over month increase. That’s the slowest growth since June 2020.
However that is contrasted by Arizona’s unemployment rate, which slightly rose in August up to 3.5%. That is a jump of 0.2% from July.
While sectors like manufacturing continued to see gains, a large portion of the 6,400 people who lost their jobs held positions in hospitality and financial services.
Arizona is following a trend that is being seen nationwide as well, as the country’s unemployment rate is now at 3.7%.
