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.
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%.
Increasing inventory is reflected as rising to 2.6 months versus 3/6/22 being 14 days.
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.
Sales prices have dropped slightly. Time will tell as the market bears these shifting dynamics in the coming months.
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.
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.