May Market Report for

Greater Phoenix Metro Area

If you’re a homeowner in Greater Phoenix Metro or planning to enter the market soon listen up, I’m going to be sharing an update on the latest real estate market trends from April of 2024. 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

Alright in April we are moving so close to a balanced market !! What does that mean? Supply is growing at a faster rate than demand. Last month I talked about how. 4-6 months of inventory indicate a more balanced market, We’ve observed a rise in supply due to both an increase in building starts and a weakening demand caused by rising rates.. If you compare this same stat to last year we have more inventory- The housing
market has begun to drift over the past 4 weeks with weaker demand. Listings under contract are down 6% compared to last year, but active listings are up 26%.

April Data for May Updates

Average Price ● The average price for a single family residential detached home is $608,900 but keep in mind that is the average across all areas of the Phoenix Metro. Contrary to what the media is telling the public this price increase has been steady. Last Month this stat came in at
$583,350  again this is an increase from last month and last year.

List to Sale Price Ratio ● The average list to sale price ratio was 97.89% in April. That simply means that properties were selling for just below list price. That’s slightly down from 97.9% last month, but down from the peak for this data point a whopping 101.8% last year. Again lets look back at last year where your home was promised to sell in 2 days. Remember those commercials? the strategy there was to list the home at a ridiculous price that everyone and their dog showed up to the open house. Also when taking our market this year with our challenges around rates a full asking price does not necessarily mean the home netted the seller more money. Closings over asking price have edged up seasonally to 17% of April sales so far, but the majority of sales are negotiated down by an average of 2.1% below list

Days on Market

  • You might be wondering how long it takes properties to sell right now? In April the average cumulative days on market in the Phoenix Area was 64 days this is from list to sold. That is actually down from 72 days last year which is odd to me as we have more supply but I suspect this was more of a learning curve for those that were nervous about the market and the effects the rates had on demand but even then not a huge decrease from 2023 to 2024.

Interest Rates

  • The average 30-year, fixed-rate mortgage as of May of 2024 was 30-year fixed 7.54%
    but our friend Ray Harris will be providing us with his lender perspective on where the rates are expected to be in the next few months.

Market Trends Insight

The heat is here! As the valley heats up in weather so does the real estate market but this April is bringing a slower start.

Inflation is the hot topic these days. Investors talk about hedging inflation with strategies that include gold, commodities, rentals, or even crypto. For young adults, however, the first step towards hedging inflation is typically moving out of a rental and into homeownership. So the best advice I can give is do what you can to get in the game as soon as possible – While in theory renting is more affordable than owning you get stuck in the trap of never accessing equity, tax deductions or the possibility of a move up and becoming a landlord yourself if that is the route you want to go.

For sellers make sure your home is a show stopper. If you want to compete for the highest price you better be able to compete with quality with the builders and their juicy incentives. Word on the street is resale homes needing to be remodeled or updated are sitting a week or two longer.

As far as investor purchases go, wholesale offers are due to get uglier with increased holding costs, stagnate monthly appreciation, and smaller returns. Flip
sales are down 74% from 2 years ago and at a level comparable to 2015.

Data paraphrased by Blanca with the assistance of date from Tina Tamboer, Senior Housing Analyst with The Cromford Report.

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