The number of available properties for sale went up AGAIN this week. It’s up 14% since last month…AND the Inventory Absorption Rate has gone up 26% in the past 2 months. How is this impacting sales and prices? Let’s get into it and take a closer look at the Phoenix Real Estate Market.
There are 6,842 Homes for Sale
28,781 Homes Sold over the Past 90 Days
The Inventory Absorption Rate is 21.39 Days
The Average Days on Market is 27
The List to Sales Price Ratio is 101.5%
The Average Sales Price is $505,743
The Average 1 Year ago was $371,534
1 Year Increase is 26.53%
Let’s go a little deeper…
Just like we said last week there is no need to panic. The sky IS NOT FALLING. We are not in a Bubble or Crash. The Average Sales Price is kind of like a heartbeat, last week it was down and now it’s up. The Inventory Absorption Rate IS up 26.32% since May BUT it’s still just 21.39 Days. Active listing inventory is up 14.25% BUT Pending Sales are still outpacing Actives.
What trends are we seeing?
Pending Sales start to slow down in the $750K to $1M pricing band however Pending sales still outpace Active listings. Where it breaks is the above $1M pricing band. There is still only 1.42 months of inventory in the $1M band but its still robust if you look at last year where there was 4.68 months of inventory. The prognosis for the overall market is buyers will continue to see more homes to look at and properties are beginning to stay on the market longer. There still are multiple offers just not as many because there are more choices.
We’ve been keeping an eye on the percentage of properties staying on the market longer. 5 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 60%. Homes on the market for 30 days or more 4 weeks ago was 34%, last week 37% and this week it’s 37.4%.
Make no mistake we are still in an Extreme Seller’s Market. It’s just cooling off. This cooling off is a very, very long way from being even a normal market let alone a buyer’s market. Prices will continue to go up just not as quickly.
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.