Home purchasing

Arizona homebuyers get more buying power as market cools

PHOENIX (3TV/CBS 5) — Real estate experts across the state say buyers now have a lot more negotiating room and aren’t caught up in the multiple bidding war frenzy that’s been common for the past two years.

So if you bought a house during this time or tried to do so, you probably noticed that there was no wiggle room for anything. Sellers simply weren’t leaning into price discounts or other concessions. But according to Frank Martin Real Estate, over the past six months for single-family homes in Phoenix, the average selling price has dropped $8,800 and homes have been on the market longer.

Estate agent Frank Martin says buyers are now reaping the benefits. “Over the past 15 months, a buyer in a real estate transaction was getting a seller’s concession 3-5% of the time. At the end of July, we saw this figure jump to 27%. This means seller leverage has eroded so much that more trades are benefiting buyers,” he said.

House prices are still up from last year, combine that with higher mortgage rates, and more people are still waiting to buy. However, in addition to increased buying power, buyers are now inducing sellers to lower their interest rate, saving them even more money.