Hello everybody, welcome back to Suburban Snacks! This month’s snack is Peanut Brittle! Before we review the snack, we’ll be informing you on whether or not home prices are going to go down in 2023 in Arizona. Now let’s just start this episode off by saying, nobody can ever truly predict what the market will be in the future. However, we can look at some metrics that may give us insight into what we can expect. One of the best metrics we have to predict housing prices is supply and demand. But in Real Estate we call it the absorption rate. Absorption rate measures how quickly houses are sold, AKA a measure of supply and demand. By taking the number of homes sold in a month and dividing it by the number on the market, you can find a percentage that determines how quickly homes sell. Based on the Multiple Listing Service of Southern Arizona, in October of 2021, the absorption rate for Pima County was 62%. In October of 2022, the absorption rate for Pima County was 28%. When you subtract 28 from 62 you get 34. This means that your home will take 34% longer to sell in today’s market compared to a year ago. This tells us that we are now in a more balanced market. But does this mean that housing prices will go down in 2023? The short answer is yes. In general, if more people decide to sell their homes and not enough homes are getting sold, then sellers are going to have to come down in pricing in order to sell. This is a shift we’ve been experiencing over the past couple of months already. So, if you are someone looking to invest or sell your home in Southern Arizona, then we at Suburban would love to help! Do you like Peanut Brittle? Let us know in the comments below. That’s going to do it for us here at Suburban Snacks. If you have any questions or would like to get in contact with us feel free to check out our website at suburbanrealestategroup.com. Also, make sure to click the link below to follow us on Facebook. Thanks for watching, my name is Cade Olof and we will see you in the next one!