“Home is where the heart is” is a great sentiment and looks great on a decor pillow but home should be a place of sanctuary. Home is the place where you feel safest, are most comfortable, and where you get to be surrounded by your favorite people every day. Due to advancements in technology and changes in how companies are structured, there are a lot of us who also work from our home, which adds a whole new layer to what we need from our houses.
Most of us are familiar with how the housing market changed in 2020. Many states, including Arizona, saw a rise in home prices as people decided that a new home state was in order. Add in the steep drop in interest rates and everybody was looking at buying a new home. It created a buying and selling market like no other, one that hasn’t been seen in decades and experts are unsure if we will see it again anytime soon.
We sat down with Lorraine Ryall, local real estate agent extraordinaire to learn and understand what is happening in the real estate industry. It’s been five years since the changes of 2020. We all know a lot can change in a year, which means a lot more can change in five years. Perhaps you are outgrowing your home or maybe you want to downsize, or maybe you want to get out of renting and finally buy your first home. Regardless of which category you fall into, one thing is clear: everything starts with a conversation.
Right now, the housing market is balanced. When the market is balanced, it tends to favor buyers more because sellers need to incentivize buyers into buying their home. A lot of people have been in a holding pattern, waiting to see if interest rates dropped. Many people are still hanging out in that waiting pattern, waiting for interest rates to drop. There’s a phrase in real estate, “marry the house, date the rate.”
It’s starting to seem like waiting for the interest rate to drop is like waiting for rain as you live in the desert. It takes forever. Once it does rain, it doesn't seem worth the wait. Ryall doesn’t think interest rates are going to drop significantly enough to match the interest rates of 2020, which seems to be what people are waiting for. The phrase she shared with me paints an interesting picture. You’re not buying a house to commit to an interest rate. You’re buying a house because you are making the commitment to the house. If interest rates drop in six months, you could consider refinancing to better your rate. In the end, rates are changeable, the house isn’t. This holding pattern can hurt your chances of getting a good price on the house you love.
You might not think that the house market works in seasons but there is a seasonal aspect to it. We’re approaching it right now. The peak of buying and selling is in March and April. This puts the peak season of closing happening in May and June. We’re approaching the home buying season and while the market is currently balanced, things can shift into a seller’s market very easily. Seller’s market housing atmosphere makes buying difficult because it makes negotiation harder. Sellers aren’t incentivized to get a buyer and it puts the pressure on buyers to incentivize the seller into picking their offer over others they may be looking at.
How do you know it’s time to buy? Looking at the current status of the market is probably a good place to start with. Other things to think about is whether or not you are currently renting. “Why pay someone else’s mortgage when you can pay your own?” Ryall says. She brings up a good point, however, many renters might feel as if home buying is out of reach due to countless circumstances, it doesn’t hurt to have some conversations. It is absolutely free to explore possibilities. There are many programs that exist to help first-time home buyers and all you have to do is talk to a lender to learn more. That’s where your conversations start— with a lender.
There have been changes to the real estate industry over the past year that buyers might not be aware of. Due to a lawsuit that was settled in 2024, buyer’s agents are no longer compensated by the seller as part of selling their home. This is a big change but not one that should scare a buyer away from hiring an agent. In fact, on its face, hearing about having to sign a buyer’s agreement before being able to see houses might incentivize buyers into representing themselves. Don’t DIY your home buying! It is always better to have an expert to represent you and your interests.
Ryall recommends interviewing real estate agents and don’t be afraid to talk to a few of them. You don’t have to start looking at houses right away but take some time to find someone you click with. Have key questions to ask prospective agents and see how the conversation goes. The difference could be your agent knowing that they have found you your perfect house and someone who shows you every house imaginable, waiting for you to just pick one.
Don’t DIY your home buy! It is always better to have an expert to represent you and your interests.