July, 2022 Phoenix Housing Market Report

By
Real Estate Agent with Value Added Service, 602-620-2699 SA5376460000

July, 2022 has brought changes to the real estate market in Phoenix, Arizona. The wave across the country is rising inventory and price reductions.   The number of sales is less than 2021 year over year; however, we're experiencing a market correction, not a housing crash.  The last 2 years of price increases with unrealistic demands were simply not sustainable.  Homeowners have a lot of equity and good FICO scores, entirely different than the housing recession. 

 

Active homes for sale in Maricopa County, Arizona have risen to 2018 levels of inventory.  BUT those numbers are still far below a normal market.  The number of homes for sale would have to almost double to be a normal, balanced market.  

Active Listings July 2022 Phoenix

Thanks to interest rates climbing the last 2 months, many buyers have been priced out of their homes and have cancelled their current home listing.  These cancellations will be reflected in buyer demand as move-up buyers have changed their plans.   Some home owners have decided not to move if they have interest rates lower than 5%. 

Cancelled Listings July 2022 Phoenix

Increasing inventory is reflected as rising to 2.6 months versus 3/6/22 being 14 days. 

Months of Supply

 

An early indicator of this shifting market has been price reductions.  As buyers stop looking at homes and making offers, price reductions have been happening at record levels. 

Price Reductions July 2022 Phoenix

Sales prices have dropped slightly.  Time will tell as the market bears these shifting dynamics in the coming months.

Median Sales Price July 2022 Phoenix

Total dollar volume is the highest it's ever been, surpassing the top selling 2005 real estate market by 45%!  Notice that there is very little HUD, REO or short sales.  The cover photo shares that those missing 3 mortgage payments have ticked up slightly, but in fact are only 20 listings on the Arizona Regional MLS. 

Year to Date Volume July 2022 Phoenix

There are currently 17,740 Active listings on the MLS for Maricopa and parts of Pinal County. Of that number, 142 are foreign nationals selling their second homes; 137 are probate/estate sales; 43 are corporate relocations;  and 1,052 are agents selling their homes. 

 

Charts provided by subscription to the Cromford Report.  Please DO NOT COPY as these are subject to copyright. 

 

When you're buying and selling real estate in the Phoenix Metro Area, choose an agent who understand the shifting housing market. 

 

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Comments (8)

Beth and Richard Witt
Long Island Cash Home Buyer - Center Moriches, NY
Long Island Cash Home Buyer 516-330-6940

Our current market reminds me of the market we didn't enjoy in 1980... With the current inflation, we may be in for a very interesting ride...

Aug 03, 2022 02:00 PM
Dorie Dillard Austin TX
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
NW Austin ~ Canyon Creek and Spicewood/Balcones

Good evening Jan,

Most all markets are shifting..until inflation gets corralled consumers are going to continue to feel uneasy. Supply has not come even close to demand so buyers and sellers need to be realistic about the market..the sky is not falling... we are seeing a correction.

Aug 03, 2022 03:43 PM
John Pusa
Berkshire Hathaway Home Services Crest - Glendale, CA
Your All Time Realtor With Exceptional Service

Hello Jan Green - Scottsdale, AZ thank you for sharing very valuable Phoenix housing market report July 2022.

Aug 03, 2022 04:32 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

We shall see Beth and Richard Witt !  Thank you for commenting! 

Exactly Dorie Dillard Austin TX . I added that fact to the introductory paragraph, so thank you for the reminder.  As a former banker and securities licensed insurance agent, this is NOT the housing crash of 2022!  Thank you for your spot on comments!

Thank you for commenting John Pusa !  I appreciate it!

Aug 03, 2022 07:27 PM
Joe Jackson
Keller Williams Capital Partners Realty - Columbus, OH
Clintonville and Central Ohio Real Estate Expert

This is an excellent post with great information. Thanks for sharing it.

Have a super fantastic week!
Joe Jackson, Realtor-KWCP

Aug 04, 2022 07:04 AM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Thank you Joe Jackson!  Hope you're doing well!

Aug 04, 2022 02:56 PM
Anna Banana Kruchten CRS, Phoenix Broker
HomeSmart Real Estate BR030809000 - Phoenix, AZ
602-380-4886

Hi Jan just another shift in the market and top agents know how to manage it and how to keep on top of the data - as you do!  I am hopeful that at some point inflation gets under control and we don't dip into a deeper recession.  But a lot is going on in so many arenas so time will tell.  Hold your horses!!

Aug 04, 2022 04:26 PM
Jan Green - Scottsdale, AZ
Value Added Service, 602-620-2699 - Scottsdale, AZ
HomeSmart Elite Group, REALTOR®, EcoBroker, GREEN

Oh yes Anna Banana Kruchten CRS, Phoenix Broker !  It is surprising how fast things have changed.  I agree with you, it is a shift and there is just too much demand, thanks to the economics going on in the Phoenix area.  Amen sister!

Aug 06, 2022 07:25 PM
Anna Banana Kruchten CRS, Phoenix Broker

Too much demand?  Not thinking quite like that.  I'm seeing a lot higher inventory in some areas, in particular the ones we watch daily. I agree PHX economy is going strong.....and.....let's hope it continues and things level out.

Aug 06, 2022 09:18 PM