Here’s what buyers and sellers should know about our housing market.
I want to provide you with a market update for the general Phoenix area, but before that, let’s discuss the national numbers. According to the National Association of REALTORS®, there’s an expected 20% shortfall in the number of closed transactions from last year to this year, which translates to over a million fewer sales in the United States. Now, let’s focus on the Phoenix market and dive into the current trends.
Comparing this month to this time last year, there was a 27% decrease in listing activity, meaning there are fewer homes on the market. To give you some context, in March of 2022, the inventory hit a low of about 4,400 homes, with a frenzy of multiple offers driving prices significantly above market value. However, in October of 2022, the inventory saw a rise to 20,000 homes, a level not seen in many years. The market remained relatively flat between October and December, leaning towards a buyer’s market in most areas of Maricopa County.
January of 2023 saw a drop in inventory, decreasing by approximately 243 homes per week. At this rate, we’re heading back toward a frenzy. Currently, there are around 11,000 active homes on the market, down about 27% from the same period last year. The number of homes under contract stands at 8,123, reflecting a 6% decrease from last year. Additionally, the median price has only dropped 5%, indicating overall stability in the Phoenix area with a median price of $440,000.
Another critical statistic to consider is the number of closings, which was down by 7.5% compared to last year. Considering the national projections of a 20% drop, the Phoenix market appears to be performing relatively well.
In terms of supply, there is currently a 1.9 months supply of inventory. This means that if no additional homes are listed in the next month and a half, we will have no homes left to sell. The average days on market for homes is approximately 57 days.
Whether you are planning to buy or sell in this market, or even just considering your options, I encourage you to call or email me. Let’s have a conversation and explore the best approach for your specific needs and goals.