Phoenix median home price drops $20k but experts say not to fear a crash - Axios PhoenixLog InLog InAxios Phoenix is an Axios company.

Phoenix median home price drops $20k but a crash is unlikely

Data: ; Chart: Kavya Beheraj/AxiosPhoenix's hot housing market is cooling — not crashing. Why it matters: When home prices started to fall this summer, many in the Valley were reminded of the 2008 housing crash that left more than two-thirds of metro Phoenix homeowners underwater on their mortgages.But experts tell Axios Phoenix the market is just settling after more than two years of unsustainable growth and it is not cause for concern. State of play: The median home sale price fell by $5,000 in June and $20,000 in July after rising by an average of almost $9,000 per month since January 2021. Yes, but: July's median sale price was still $440,000 —$45,000 more than it was a year ago.This means almost all homeowners have positive equity in their homes. Flashback: Jamison Lunnen, vice president of real estate operations at Homie, said the 2008 crash was a combination of bad lending practices and negative equity — neither of which is an issue today.Even if a homeowner is unable to pay their mortgage, they probably won't go into foreclosure because they can likely sell their home and walk away with a profit. The upside: Our market shift may pay off for buyers who have been patiently waiting out the insanity of the past two years.Gone are the days of buyers paying $50,000 or more over asking price and waiving inspections. Buyers may even get sellers to come down on the and agree to concessions — a rarity this time last year. Buy here: Local broker Rebecca Hidalgo Rains said there are actually several cities in the Valley that are officially a "buyer's market," according to the August Cromford Market Index, which measures the balance of supply and demand.Buckeye, Queen Creek, Maricopa, Gilbert, Tempe, Surprise, Chandler, Peoria and Glendale all had higher supply levels than demand.The metro Phoenix market as a whole is still a seller's market, but only moderately so, indicating a pretty balanced market, Hidalgo Rains said. The caveat: Of course, a buyer's market only benefits people who can afford to buy. And many middle-income workers have been priced out of the market in the past two years. Get more local stories in your inbox with .Subscribe Support local journalism by becoming a member.

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