For the Greater Phoenix Metro

Data from Cromford Report - Phoenix Metro

July Real Estate Market Update

Are you sick of the headlines telling you the real estate market is crashing without any data to back it up?? In this July Market update I’m going to be sharing the real stats and latest trends.

Make sure you stick around till the end so that you can take advantage of some hidden opportunities in the real estate market for both buyers and sellers. Let’s go!!

Overview– Okay in July we have finally reached a balanced market last month we were just a hair away from this but July proved to be the month of change !! The supply has reached a level that can finally be called balanced while demand remains subdued.. Or even stifled.

Average Price

As far as prices go for a single family residential detached home is the data is in – The overall median sales price in June was $589,919 down from 1.01% from June but up year over year from 2023 2%. Do keep in mind that this is the average across all areas of the Phoenix Metro. If you are looking for Median price this number is $450,000 which is been consistent at this price for a few months now. Up from 2023 so no crash yet we will keep waiting.

List to Sale Price Ratio


Now list to sold ratio was 97.74% in June. In simple terms this just means that properties were selling for just below list price… very close. You list at 100k you are selling for 97k … That’s slightly down from 97.9% last month, but decreased from the 98.04% last year. Closings over asking price did edge up in April but sales have tapered off so far during summer which is the norm with this weather.

Days on Market

You might be wondering how long it takes properties to sell right now? In JUNE the average cumulative days on market in the Phoenix Area was 80 days this is from list to sold. That is actually down from 88 days last year which is ON track for the season and with the increase of more supply but I suspect this light increase in number of days could be demand absorbing some of the supply that has increased since last year. and the effects that a slight rate decrease had on demand but even then not a huge change from 2023 to 2024.

Interest Rates

Ok average 30-year, fixed-rate mortgage as of July of 2024 was 7.54% this has been steady at this rate for the last few months. Kiriam with Direct Home Loans will give the lender perspective this month

Insights for the Buyers and Sellers

Buyers  for you the pros and cons are endless but if you are currently on the market and are writing offers it might be easier for you to get your offer accepted since competition from other buyers is low. Take advantage of that… your agent can ask for those extras, more concessions or repairs and not be completely ignored. In April I talked about how seasonally we slow down for summer here in the Arizona real estate market but data is showing There are some price ranges which have seen larger increases in supply.
These are:

Below $300K – up by 94% everyone is dumping their junk but the investors aren’t bitting
From $300K and $350K – up by 64%
From $400K to $450K – up by 76% – this is usually the price range where first time home buyers get in at
From $500K to $600K – up by 77% buyers we are able to pick from more homes in resale and new construction.
From $1.5M to $2M – up by 64%
From $5M to $7.5M – up by 59%

For sellers Price reductions are increasing in frequency and amount . Closing counts look very poor when compared with last month, as well as with a year ago. New homes closings were slightly weaker, falling 4% compared to a year ago, but re-sales were down by a massive 16%.

The number of single-family detached homes available for sale in active ARMLS listings has increased by 57% in Greater Phoenix since this time last year. What does that mean for you sellers. You need to put your best foot forward if you want your house to stand out. That means be the pretties, best smelling and have the incentives or be the lowest priced. And patience will need to become your virtue as buyers are still warming up to these rates.

Sellers if you are in Gilbert Mesa, in the East or Peoria, Goodyear, Paradise Valley, or Glendale these cities primary locations moving in favor of buyers, with Gilbert’s market deteriorating the fastest..

If you are looking at the rental market, apartments have grown the most since last year – they are 34% more numerous among the active listings. Single-family rental units have increased much less – only 9%. Townhouses are in between with 15% more inventory than a year ago. This is important because as buyers decide to either rent or purchase they are able to negotiate better lease agreements if willing to move into an apartment which seems to be an oversupplied market at the moment.

You know the deal …data is important when considering buying or selling, but your situation is unique. A general market helps to see what everyone else is doing but If you want a narrowed down market report for your city or want more accurate data on questions you have about your options. You can either request a free no-obligation comparative market analysis for your home or book a consultation with me to have a no-pressure conversation about your options. Happy to provide the info needed this way you can feel confident  in making the best decision that’s right for you, based on your personal situation.

 

Compare listings

Compare
en_USEnglish