Phoenix Market Update as of the Beginning of May
There has been so much misinformation about the real estate market in the national media lately, and our goal is always to provide our clients with accurate, real time local market data. As such, we follow Tina Tamboer, Senior Analyst with the Cromford Report, to help us spread the word about what is really happening in our local real estate market. Here are some highlights for the beginning of May.
SUPPLY = 44% below normal, and dropping
DEMAND = 17% below normal, and rising
NEW LISTINGS = Only 30k new listings YTD; this is the lowest in over 23 years! We need more inventory!
LISTINGS UNDER CONTRACT = Down from April 2022 but has risen for past 4 weeks
DAYS ON MARKET = 25; historically normal
MEDIAN SALES PRICE = $455,000 – up from $430,000 last month
** This has increased for the last 2 months!
ANNUAL MEDIAN SALES PRICE PER SQUARE FOOT APPRECIATION = Down 7.6% Year-Over-Year due to the rapid appreciation we experienced in April last year
PRICE REDUCTIONS = Are insignificant; only 9% of listings had a price reduction in the last week of April 2023; this indicates less pressure on Sellers due to low supply
* * median price reduction was $10,000, but varies by price point
CONCESSIONS = 42.5% of all sales in April had seller paid concessions; median concession is $9,000
SUMMARY
Greater Phoenix is in a Seller Market (tracking 2016)
Supply is declining by 41 listings per day on average; we have an insufficient number of new listings to offset accepted contracts and cancelled/expired listings
FHA contracts getting popular
We are seeing less downward pressure on price due to fewer new listings hitting the market
What’s reasonable to expect in the coming weeks/months?
Leading metrics in Greater Phoenix do not support continued downward pressure on price for most cities
We could have a delayed season due to low inventory and mortgage rate instability
Mortgage rate volatility is worse than the rate itself – we need stability for both buyers and sellers to move
