Phoenix Arizona Real Estate Market Update - The Average Sales Price Dropped!
The number of available properties for sale went up this week by another 4%, that’s 8.36% in two weeks…AND the Inventory Absorption Rate finally topped 20 Days AND the Average Sales Price DROPPED for the first time in 7 months. Want to know how this could impact us? Let’s get into it and take a closer look at the Phoenix Real Estate Market.
There are 6,594 Homes for Sale
29,036 Homes Sold over the Past 90 Days
The Inventory Absorption Rate is 20.44 Days
The Average Days on Market is 27
The List to Sales Price Ratio is 101.6%
The Average Sales Price is $504,575
The Average 1 Year ago was $368,582
1 Year Increase is 26.89%
Let’s go a little deeper…
Okay. The first thing for you to know is: The sky IS NOT FALLING. We are not at the precipice of a Market Crash. Yes the Average Sales Price is down however that is just an indicator that the higher luxury end of things is softening and that only accounts for 1.6% of the market. BUT, combined with the Inventory Absorption Rate going UP 4.6% to over 20 Days we are starting to see more choices for buyers. Which is a good thing. The Median Price, which is $397,000, is still up 1.8% over last month and up 30.2% over last year.
What trends are we seeing?
The upper end of the market is slowing which is starting to have an impact on the lower. However, there is still only 2.95 months of inventory over $2M and 1.39 months from $1M-$2M so it should take months of the Luxury segment slowing down to significantly impact the meat of our market which has under 16 Days of Inventory.
We’ve been keeping an eye on the percentage of properties staying on the market longer. 4 weeks ago 53% of homes were staying on the market for 14 days or more. Last week it was 59% and this week it’s still 59%. Homes on the market for 30 days or more 3 weeks ago was 34%, last week 36.3% and this week it’s 37.2%.
We are definitely seeing buyer fatigue in the market which is good for those that have been sitting on the sidelines. You now will have a little less competition, more inventory to choose from and the price won’t be going up exponentially BUT it’s still going to go up.
So all this kind of answers that Question ALL Seller’s ask: Are we at the top of the market? Yes, pretty much BUT prices WILL continue in an upward trend just at a slower pace. It will become increasingly harder to sell a home. As the Inventory Absorption Rate goes up, properties will sit on the market longer. IF your home isn’t priced right, doesn’t show well and not marketed properly to the widest audience possible you will be sitting on the market longer and sell for less than you could if you don’t put the effort in.
That’s it for this weeks market update. Please be sure to like or follow us. Stay safe out there and if you have any questions about the Phoenix Real Estate Market you know whom to call.
Text or Call Dean at 602-391-9434 with any of you #Arizona real estate questions.