Maricopa County residential real estate saw higher prices and interest rates, more inventory and fewer transactions in 2022, a new report from Phoenix Realtors® shows.
The data, gathered from the Arizona Regional Multiple Listing Service, shows a slowdown in the second half of the year as interest rates rose.
“When we look at where we began — mortgage rates near historic lows, fierce buyer competition, homes selling seemingly faster than it takes to put a sign in the ground — it’s fair to say that the tides have definitely turned, but it may not be as horrible as people think,” said Butch Leiber, president of Phoenix Realtors.
In Maricopa County and surrounding communities, home prices were up 15% to $460,000 in 2022, single-family home prices were up 14.3% and townhouse/condo home prices were up 19.6%. At the same time, pending sales were down 27% and closed sales dropped 23%.
The number of homes that sold for $500,000 or more increased 5.5% year over year to 33,914. Housing inventory at the end of 2022 was more than double what it was a year earlier.
Leiber believes the relatively strong economy in the Phoenix area will help stave off any serious declines in the real estate market in 2023.
“Home sales may soften, price growth will moderate and inventory will remain tight,” he said. “But given Phoenix’s comfortable position as a market still seeing significant economic growth, it’s anticipated that the larger price declines and stresses seen nationally may not have as significant an impact locally.”