The Phoenix Housing Market is mirroring many housing markets across the country. With low inventory, fewer sales, and increasing prices.. The main photo for this post clearly illustrates that supply level declines are a real issue in Phoenix. Inventory dropped 37% year over year in Phoenix as of September 24, 2023.
These charts are provided by subscription to the Cromford Report.
The current supply of homes available for sale in Phoenix is fewer than 2019 levels! Inventory has increased slightly, coinciding with the rise in interest rates. Those on the sidelines, thanks to interest rate increases, will be back once rates drop but in competition with many other buyers.
The number of days it takes to sell a home increased sharply beginning April 2022, but has been on the decline from October, 2022 to August 5, 2023. With rising interest rates, the number of days it takes to sell a home has increased by a couple of days recently.
But the real indicator is under contract price per square foot. These homes are under contract, but the sales price is not published. This report shows the average price per square foot homes will close and record. Knowing this data, puts buyers and sellers in the driver's seat when deciding whether to buy or sell a home. Homes going under contract in May stalled in price as interest rates inched upward. Prices flattened January 25, 2023 and began increasing again. This chart starts in January, 2016 and prices have been generally increasing ever since.
If you're looking to make a move, make sure that you select a veteran real estate agent. Ask specific questions as to how they think the housing market will react if interest rates change. Ask an agent how long they have been in business and what their prior work history was before starting their real estate career. Answers to these questions are critically important in assisting you with your real estate purchases and sales.
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