There were several key improvements in the Phoenix real estate market from January to February, according to the latest Phoenix REALTORS® report.

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.

“We are seeing some improvements in month-over-month numbers from January to February of this year, which is important given the numbers we saw as we closed out 2022,” said Phoenix REALTORS® President Butch Leiber. “Inventory is higher than at any time in the last four years, giving buyers more homes to choose from. However, since demand has also fallen, days of inventory has stayed steady since the first of the year.”

Active listings increased to 16,619 in February, a 168% increase over February 2022. Inventory is now at a 2.8-month supply in Phoenix, a 300% increase year over year.

While decreased buying activity has allowed inventory to rebuild, new listings added to the Multiple Listing Service (MLS) are significantly lower than they were last year. Only 6,605 new homes were added to the market last month, which is 22.9% less than the 8,562 homes added in February 2022.

“It’s important to hear these numbers within the current state of the market,” Leiber continued. “For the past several years, the Phoenix market has been red hot, so seeing huge fluctuations in the market may be nerve-wracking. In reality, the residential real estate market is closer to the ‘normal’ of where it should be.”