The number of new listings and the median sales prices keep climbing, according to year-to-date data from Phoenix REALTORS. The summer doldrums continue into September, with August’s sales and closings to date running below last year’s numbers.
“Federal Reserve watchers predict a possible large interest rate cut after the August jobs report,” said Sheryl Bowden, Phoenix REALTORS board president. “While it’s been a challenging summer with a tough market to close sales, a continuing decrease in interest rates should lend itself to more activity in the fall.”
While Greater Phoenix new listings are up 14.2% and the median sales price is up 4.8% year-to-date, pending sales are down 7.8%, and closed deals are down 3.8% compared to 2023 year-to-date numbers.
At the end of the month, housing inventory was up 49.8% compared to last year, with enough homes for nearly four months’ worth of sales activity.
Across the market, the median sales price was nearly $477,000; a slower gain allowed housing affordability to rise from 69 to 71.
One figure that has held steady is the percentage of the listing price paid to buy the median home. It has rested slightly over or under 98% of the asking price for each month for the last 12 months.
Around the metropolitan area are some individual bright spots and some significant changes. In Scottsdale, the median sales price jumped 11% to $1.137 million compared to last year. The Southeast Valley showed gains as well. Queen Creek’s median home price was up 9.4%, and in Gilbert, the median price climbed 7.1% in year-to-date data.
Phoenix, Mesa, and San Tan Valley saw price increases of around 4%. In the West Valley, median sales price gains were slightly lower, at 2.5% to 3.5% in cities like Avondale, Buckeye and Surprise.
“Home prices continue to show property as a good investment with a steady rise,” said Bowden. “With interest rates dropping, the affordability index improving, the coming months are a good time for people to purchase homes.”
Throughout Greater Phoenix, houses spent fewer days on the market before sales, with Gilbert holding the best number, nearly 20% faster than last year. Avondale, Buckeye and Surprise also showed a faster turnover from listing to sale. The exceptions to that trend, Scottsdale and San Tan Valley, both showed increased time on the market of around 4% longer than 2023’s year-to-date data.
Closed sales have topped 40,000 so far in 2024, less than but close to the average of the past few years. August’s pending sales, on the other hand, are the lowest since December 2007.
It’s hard to establish a trend from the numbers. The Phoenix-Mesa-Chandler metro area shows a mixed picture. Inventory, listings and prices are up, but sales are down. There are signs the market is adjusting, with homes sitting on the market for fewer days. A lot depends on demand, which is still somewhat cool for a hot market.
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