Phoenix Arizona Real Estate Market Update - The Inventory Absorption Rate DROPPED & Rents SKYROCKET
The number of available properties for sale is virtually unchanged and the Inventory Absorption Rate DROPPED for the first time in 9 weeks . What else is going on? Let’s get into it and take a closer look at the Phoenix Real Estate Market.
There are 7,349 Homes for Sale
27,108 Homes Sold over the Past 90 Days
The Inventory Absorption Rate is 24.39 Days
The Average Days on Market is 27
The List to Sales Price Ratio is 101.3%
The Average Sales Price is $500,942
The Average 1 Year ago was $385,127
1 Year Increase is 23.11%
Let’s go a little deeper…
The Median Price had been going up each month then the pace slowed and it has now plateaued at $405,000 for both July and August. Despite this it is still up 24.6% year over year from 2020’s $325,000. Sold listings did jump up considerably from last week as predicted because we were headed towards the end of the month.
What trends are we seeing?
Rent is absolutely bonkers with no end coming soon. You see we not only have a housing shortage on the resale side here in Phoenix. The shortage for rental properties is so bad rents have jumped 15.7% in a year and are expected to do the same in the coming year. Rental occupancy is at an all time high so landlords are requesting proof that renters take home salary is 3 to 3.5 times the rent. They are also commanding the top end on deposits. A 2 bedroom 2 bath apartment in Tempe is going for $2250 per month.
We are also experiencing an over pricing phenomenon with our resale inventory. Price reductions per week have tripled since March. In March weekly price reductions numbered in the 80’s, in July and August they’ve been in the 200’s. Last week there were 256 price reductions. The percentage of properties staying on the market longer than 30 days or more went up this week from 39.9% to 41.2%.
What does this all mean if you’re a buyer?
We are having less multiple offer situations, there are more properties to choose from and if you want to pay less than asking price there are opportunities.
What about if you want to sell?
The Median Sales Price is at an all time high. If you sell now you’re doing so at the height of the market. Will prices come down? No however the pace is slowing and you’ll need your home to look it’s best to command top dollar moving forward.
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 your #Arizona real estate questions.