Positive Signs Showing in June Residential Real Estate’s Challenging Phoenix Market

Inventory is growing; prices continue upward tick, and days on market drop in June

inbusinessPHX.com

New listings climbed 15.8% for the first half of 2024 compared to last year, based on the latest data from Phoenix REALTORS. The month-over-month median sales price was up just 1.5%. Days on the Greater Phoenix market dropped over 11% for the year’s first half.

“It’s still a challenging marketplace, and the number of homes on the market is growing,” said Sheryl Bowden, board president of Phoenix REALTORS. “With interest rates down nearly a point from last winter, houses are selling faster.”

For the first half of 2024, the days on the market dropped from 72 last year to 64 this year, down significantly from the same period in 2023. Even with more homes on the market, homes are moving more quickly than a year ago.

The median sales price climbed just 5.7% compared to the first six months of 2023, now at $479,900 compared to $454,000 a year ago. The percentage of asking price buyers receive remains steady at over 98%, a level that has been constant for more than a year.

“It’s encouraging to see more people putting homes on the market,” Bowden said. “With the over 6,100 new listings in June, we have a strong 3.6-month inventory of more than 16,400 homes right now.”

Sales activity for the year’s first half was down compared to 2023. Pending sales dropped 9.9%, and closed deals fell 4.8% across the metropolitan area.

Four North Valley cities are starting to see real estate changes due to the Taiwan Semiconductor Manufacturing Company fabrication facility ramping up hiring in Deer Valley. The large employers opening in the Valley to support the giant semiconductor fabrication plant are adding more employees, which is a positive sign for the real estate market. The companies have started their first rounds of hiring, paving the way for a promising future.

“Many new employees are coming from outside Greater Phoenix,” said Bowden. “Housing demand will increase with their arrivals. Phoenix, Scottsdale, Peoria and Surprise will be most impacted, as the data shows that the market is changing in those areas.”