Arizona Market Report
YellowBrickDrive.com is our home-search website here in Phoenix, Arizona. You can find this Arizona Market Report right here on the website by clicking on the “Report” icon on the top right corner of any page. You can also find us on YouTube at youtube.com/@yellowbrickdrive.
November's Numbers Compared To Last Year
Active listings are up 87.9% from last year, which is no surprise at this point, with all fingers pointed directly at interest rates. Don’t let this number fool you; the reason we have more active listings is because of the low number of monthly sales. Basically, the market is experiencing a log jam. Monthly sales are down 38.4% from last year and down 16.3% from just last month.
Now, you would think this would lead to significant price drops, but to the contrary median sales prices rose by 5.1% from last year to right around $436,000. Keep in mind that we have dropped 0.7% from last month, but still a small percentage in the grand scheme of things.
If we take into account the time of year, along with the rising interest rates, we see few new sellers and even fewer buyers. This leads to an inactive market with very low transaction counts.
According to the Cromford Report, the downward pressure on prices is currently small and the monthly average price per square foot barely moved between October 1 and November 1. However, there is no reason for prices to rise in the near term. The 5.6% annual home price per sq. ft. appreciation rate is likely to get down to zero sometime around year-end on its current trajectory.
There seem to be few sellers with an urgent need to sell. Otherwise, prices would be dropping at a more significant rate.
The distressed portion of our market can be attributed to Opendoor and Offerpad, while they still have large inventories of unsold and unoccupied properties. With foreclosures being scarce, cheap bargains are most likely to be found among the iBuyer listings.
It’s A Buyer’s Market…If You Can Afford It!
Conditions remain very good for buyers who can still afford a home. They have little competition, and sellers will treat them with more respect than they would have in 2021. Unfortunately, “buyers who can still afford a home” are becoming an endangered species. The Cromford Report states that even existing homeowners are often unable to afford to move because this would mean giving up their current cheap mortgage and taking out a new, very expensive one.
Individual City Market Reports Now Available
You can now watch a market report for each of the top 12 cities in the Phoenix Valley by navigating to the “Location” tab on the top right corner of any page, then selecting the Market Report tab. These reports are only available on YellowBrickDrive.com and are accompanied by monthly market statistics, including average home prices, total monthly sales, and days on market.