![\"Phoenix](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2023\/09\/AdobeStock_201629014.jpg\")
<\/a>Out of 50 metro areas surveyed, Phoenix <\/a>led in two categories: The city saw a 36.6 percent drop in year-over-year new listings, and its months\u2019 supply of inventory plummeted by almost 52 percent.<\/p>\n\n\n\n Livabl<\/a> spoke to Christy Walkers<\/a>, broker and owner of RE\/MAX Signature in Phoenix<\/a>, to find out more about what’s going on in Phoenix.<\/p>\n\n\n\n Phoenix is leading this report with a 36.6 percent drop in year-over-year new listings. Can you provide some insight into what’s going on?<\/strong> <\/p>\n\n\n\n Following COVID, Phoenix experienced one of the largest booms in our history with record-setting migration. Added to the influx of new residents, we experienced historically low-interest rates, so we are experiencing what we term \u2018golden handcuffs.\u2019<\/p>\n\n\n\n Because homeowners are typically in their homes for an average of 7-plus years, many are not planning a move for several more years. Still, they\u2019re also acknowledging higher prices and higher interest rates. These have become a deterrent to most who would traditionally think about making another move.<\/p>\n\n\n\n We will likely see a continuation of low inventory for a few years to come if there is an incentive for people to stay where they are.<\/p>\n\n\n How did the summer drought (and subsequent pause on new home construction) affect these numbers?<\/strong><\/p>\n\n\n\n It certainly had a small effect, but overall, building permits are up, and still not able to keep pace with the number of people relocating into our state. Add to the permitting challenges, the issues with the supply chain, and finding quality local trades, the new home builders are taking longer to finish construction.<\/p>\n\n\n\n Are you seeking more listings in particular areas of Phoenix?<\/strong><\/p>\n\n\n\n I haven\u2019t seen a specific area, and based on the heat map, I\u2019m seeing an even spread of listings with low inventory in almost every city.<\/p>\n\n\n\n Where in Phoenix would you find the lowest amount of inventory?<\/strong><\/p>\n\n\n\n The East Valley currently has a very low inventory in Gilbert<\/a>, Chandler,<\/a> and Mesa<\/a>. I\u2019m unsure I could accurately explain why since the West Valley tends to be more affordable and attractive to people in higher interest rate environments. My best guess as to why these cities have significantly lower inventory is that the East Valley has better job growth right now and tends to rank highly for families consistently, likely attracting most of those immigrating into our state.<\/p>\n\n\n\n Phoenix is also leading in the year-over-year decrease in monthly inventory with a 51.1 percent drop. Do you expect this trend to continue?<\/strong><\/p>\n\n\n\n At this time, I am expecting inventory to hold steady, although we could experience another small drop before a rebound. While low interest rates have a lot of homeowners locked into an affordable payment, preventing them from making their next move, inevitably, there will be people who must move because of life circumstances such as death, divorce, job, relocation, and family formation.<\/p>\n\n\n\n We are expecting interest rates to go down next year, which will incentivize people who have feared interest rates will continue rising to reconsider making a move and hopefully increase some of the available inventory. We also expect supply chain issues to continue to ease, allowing homebuilders to produce homes faster.<\/p>\n\n\n![\"Phoenix](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2023\/09\/AdobeStock_488611700.jpg\")
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![\"Phoenix](\"https:\/\/www.livabl.com\/articles\/wp-content\/uploads\/2023\/09\/AdobeStock_408849051.jpg\")
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