Current Market Data
MLS data shows that Phoenix’s median sales price reached $450,000 in February 2022. A year later, that price dropped 7.8% to $415,000.
The supply of new homes for sale ticked lower from February, according to government figures.
The annual rate of 4.58 million sales was up 14.5% from January but down 22.6% from the February 2022 rate of 5.92 million.
Nationally, the week of April 16-22 is likely to provide sellers with the most favorable conditions for a successful sale of any week of the year, although the exact timing varies widely by market.
Month-over-month increases in rental costs have slowed across the country, but it’s still more expensive to rent a one- or two-bedroom apartment in Phoenix than it was last year.
A shortage of existing-home inventory is driving more people to the market for newly built homes.
Increased mortgage rates have sidelined many would-be buyers, allowing inventory levels to increase. As a result, buyers can now “shop around” more than during the peak of the pandemic, putting the burden of concessions back on sellers.
Closings increased by 31.7% month over month, with 5,341 home sales completed in February. Additionally, the average sales price edged up from $539,617 to $544,906.
Homebuilders expressed “cautious optimism” that the lack of existing inventory would drive demand for new homes despite high construction costs and interest rates, the National Association of Home Builders reported.
Arizona had only three million-dollar cities in July of last year. However, that amount has decreased to two in the past six months.
The Mortgage Bankers Association noted the increase in borrowing activity came despite the 30-year fixed mortgage rate climbing to its highest level since November 2022.
More Phoenix renters were evicted from their homes in 2022 than in any year in the past decade.
As rising mortgage rates cool the market, the share of U.S. homes worth at least $1 million has fallen from an all-time high last year.
In January, home prices were up 5.5% annually and down 0.2% monthly, CoreLogic reported, citing its monthly Home Price Insights report.
Buyers have more choices as inventory makes a fast recovery, according to a new Realtor.com report.
People staying in their homes longer is contributing to the lack of inventory that continues to impact buyers.