Good news and bad news seem to go hand in hand, and that’s especially true in real estate. The good news is that the national economy is strong; the bad news is that strong economic trends encourage the increase of interest rates. When interest rates go up, home sales go down. When real estate sales decline, prices drop – making it a buyers market.

Most real estate specialists have characterized the Phoenix real estate market as a seller’s market. In a seller’s market, there are more buyers than there are sellers. Sellers have greater ability to price the home according to their idea of a fair price, instead of letting the buyers dictate prices. A seller’s market also means that sellers don’t have to negotiate much – they often receive their full asking price, if not more.

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