Phoenix Arizona Real Estate Market Update: 3/24/2023
Amidst bank closures, volatile mortgage rates and messages of doom the overall housing market in Phoenix continues to favor sellers. What else is going on? Let’s get into it and take a closer look at the Phoenix Real Estate Market.
14,226 Homes for Sale
9,371 Homes are Under Contract/Sale Pending
16,385 Homes Sold over the Past 90 Days
There is 78.15 Days of Inventory
The Average Days on Market is 75
The List to Sales Price Ratio is 96.9%
The Average Sales Price is $527,319
The Average 1 Year ago was $558,086
The Monthly Median Sales Price for March is currently $420,000
The Monthly Median Sales Price in March of Last Year was $462,050
The Monthly Median Sales Price is DOWN 9.1% from last year
March Median Monthly Sales Price of $420,000 is UP 1.2% from February
Our Current Annual Median Sales Price is $417,000
2022’s Annual Median Sales Price was $455,000
The Annual Median Sales Price is DOWN 8.35% from Last Year
Let’s go deeper…
Demand peaked last week and has fallen slightly however supply has fallen faster. We are still mired in this Low Supply and Low Demand Paradigm. A few banks failed which caused volatility and that translated to uncertainty about the housing market so some current homeowners don’t want to sell and some buyers don’t want to buy.
The reality here in Phoenix is that this is nothing like what transpired in the past. We don’t have a rising supply or any source currently to boost that up. Demand in the form of Buyers ebbs and flows with interest rates. Right now it’s at 6.44% which means some buyers with a good down payment and good credit could see rates at 6% or lower with a buy down. I would think this would boost Buyer activity this weekend.
The Cromford Market Index still has 13 out of the 17 cities in a market that favors Sellers. 1 city is in a Balanced market with Paradise Valley trending towards joining it and 3 are still in a market that favors Buyers because Sellers there are competing with New Construction.
That brings us to Messages of Housing Market DOOM like this one in our video
This YouTuber points to Supply being up by 190% year over year, however he doesn’t take into consideration the increased Demand or the fact that the Supply in 2022 was at it’s lowest EVER in Phoenix. He makes a big deal out of nothing but that video on YouTube garnered 310,000 views and over 2,100 comments. This creator has figured out that if he keeps making up stuff that seems like it’s bad it will drive views. The more views he has the more money he gets payed by YouTube.
The reality is we went from a little over 5,000 listings as a record low in January 2022 to 15,500 in January 2023. Now that is a significant jump however it’s not what this person makes it out to be. Our historic average is 25,000 Active listings. So he made a big deal about a year over year jump of 190% when in reality we are 40% below our Historic Average. So his lead in to a supposed Housing Market Crash is BS. Quit falling for this stuff.
That’s it for this weeks market update. If you have any questions regarding the Phoenix Real Estate Market give us a call or shoot us a text. If you know anyone interested in buying or selling real estate remember we’re never too busy for your referrals or to assist you.
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