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    The real estate market is experiencing high home prices and record-low affordability due to one main factor: supply. Owning a home offers many benefits, including security, stability, and financial freedom, but it also comes with risks tied to global and national economic trends, local supply and demand, and the open market nature of homes.

    The value of your home can fluctuate over time, making it essential to be decisive when buying or selling. With every buyer aiming for the best deal, analysis paralysis can set in. However, looking forward is crucial, especially with significant changes expected in the next four to five months.

    Supply remains the primary issue behind high prices and low affordability. Even interest rates haven't helped, but they're temporary, and debt can be refinanced. Jerome Powell, Federal Reserve Chairman, agrees that supply is the main problem, which cannot be fixed by the Fed.

    In Flagstaff, the absorption rate chart shows a recent surge in inventory, indicating a balanced market. Historically, we've seen higher inventory levels during the 2006-2008 bubble burst, but we're nowhere near those levels now. Despite current mortgage rates being at 25-year highs and global inflation concerns, demand remains paced to the market.

    The last 60 days have seen significant cost reductions for homes, but the market hasn't fully reacted yet. Mortgage applications haven't increased despite record-low interest rates, resulting in substantial savings for buyers. However, don't blink during the fall and winter – economic concerns and seasonal slowing may lead to lower demand, but it's essential to be prepared for a potential surge in buyers when interest rates dip.

    As we head into economic slowing from high inflation, 70 million more people nationally will eventually enter the market. With every 1% dip in interest rates adding five million potential competitors, it's crucial to consider the opportunity during the next four to five months before prices and demand shift again.