Is Arizona’s scorching-hot housing market cooling down?

But his bread and butter have always been purchase transactions. Refinances were just the cream that came on top, the Phoenix-based Fairway Independent Mortgage branch manager explained.

“My volume is down compared to last year, but I’m not afraid because, at least it’s Arizona,” he said. “I lived here for many years, many people are still coming to the state to live in, and I’m focusing on purchase business. Yes, my volume will go down. Hopefully, I’ll maintain a decent living, but I’m not concerned that my business is going to dry up.”

Arizona was one of the hottest real estate markets in the US, even before the pandemic. According to Schachter, the state saw a massive influx of residents migrating from bigger cities like California and Seattle, fueling housing demand in the Phoenix metro area.

Lately, however, Schachter is seeing a lot more open houses and for-sale signs. When asked if it’s a sign that demand is cooling down, Schachter clarified that it’s not a bad thing.  

“I’m not saying it’s a crash. I’m not saying it’s even a slowdown on the scene that I see,” he said. “It’s been so chaotic that some agents have been receiving 30 to 40 offers on one home. It’s really not fair for the homebuyer these days, especially the first-time homebuyer competing against cash, which was 30% of all sales during the first quarter of 2022 in Maricopa County. So, when you’re a first-time homebuyer, and you have a minimum down payment, competing against cash offers normally, you know pretty much investors, it’s just not a fair playing game.”