Based on current market trends in many parts of the U.S., including Phoenix, AZ, we appear to be in the Hyper-Supply to Early Recession phase.
Market Update - September 1, 2024
The housing market in Phoenix has seen a notable increase in supply but a drop in demand compared to last year:
Active Listings: Up 54% from 2023, with 18,430 homes available (excluding UCB & CCBS).
Pending Sales: Down 12.2%, reflecting weaker buyer interest.
Sales Prices: The average price per square foot rose 3% year-over-year, with the median home price steady at $440,000, up just 1.1% from last year.
Despite lower mortgage rates since July, buyer demand remains weak. Sellers are facing more competition, with common price cuts and concessions. The market for high-end homes ($5M+) remains strong, but for most sellers, a demand rebound is necessary to invigorate the market.
Potential buyers may be waiting for mortgage rates to drop below 6% before acting. Keep an eye on contract counts, as these will indicate whether demand is recovering.