Return to "NORMAL MARKET" in Phoenix Real Estate

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Home SOLD prices have dropped for the third consecutive month in September (based on contracts) to $440K median and we have returned to a NORMAL REAL ESTATE MARKET with the average listing taking 42 days to close per Arizona Republic real estate reporter, Catherine Reagor in an article dated today September 25, 2022. 

Reagor reports, "More good news for metro Phoenix homebuyers."

...."Valley home prices are on track to fall again in September, after dipping in August and July. But the reprieve for buyers shut out by an overheated housing market during the past few years comes as mortgage interest rates climb to the highest level since 2008.

The average rate for a 30-year mortgage climbed above 6% last week, according to Freddie Mac. That’s nearly double the rate from early January.

rising mortgage interest rates

“Higher interest rates are definitely causing sales to drop and slowing the market,” said Tina Tamboer, senior housing analyst with Phoenix-based real estate research firm Cromford Report.

But she said this is the market for homebuyers “who have been kicked to the curb for the past years” by investors and corporate buyers paying cash and sparking bidding wars.

And she said sellers shouldn't expect a quick, concession-less sale of "ugly houses" that need work." 

Sales, prices and listings

Reagor continued, "The number of houses sold in the Phoenix area inched up about 3% in August from July but was down almost 29% from a year ago, according to the Arizona Regional Multiple Listing Service.

Home sales totaled 6,136 last month, compared to 8,614 in August 2021.

Metro Phoenix’s median home price fell to $445,000 in August. That’s down from a record $475,000 in June.

The Valley’s median home price is still up 10% from August 2021 but is poised to dip to $440,000 in September based on pending sales, reports ARMLS. It took an average of 42 days for a Phoenix-area house to sell last month. That’s up nine days from July and is another sign of the market cooling.

House prices drop

House prices in Phoenix dropped in July, August and September to a median $440K SOLD price

....continuing, "The number of sellers offering buyers concessions, including paying closing costs and buying down interest rates, is steadily rising.

About 14% of home sales during the first few weeks of September included a concession, according to Cromford. That's up from 4% in June.

The number of houses listed for sale is up 89% from a year ago to 21,832, so buyers definitely have more choices.

But the listings aren’t climbing as fast as they were a few months ago, which is a sign the market could stabilize soon.

Balanced market, no crash

Housing analysts are describing metro Phoenix’s housing market as balanced after almost two years of buyers struggling in a very strong sellers’ market.

Housing analysts say home prices could fall as much as 15% this year."

Tamboer firmly stated that’s not a crash."

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Comments (2)

Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Jeff. Your market is adjusting but not anywhere near panic mode. Rates may slow the pace but look good to those who experienced rates close to 20% in the past. Pricing may adjust but will remain high. Opportunity is knocking. Who will answer the door. Enjoy your day.

Sep 26, 2022 05:25 AM
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Thanks Wayne Martin it seems like the more things change the more they stay the same. Jeff

Sep 26, 2022 09:36 PM