Homes, homes and more homes hitting the market. Let’s jump into our Phoenix metro market update for June 2022.
In March, we saw a record low inventory of slightly more than 4000 properties for sale–last month, inventory was around 9500–as of June 29, 2022 there are 13830 properties for sale across the Phoenix metro area–this represents a 32% increase in one month. There are 1000 properties “coming soon” to market and this is a similar figure from last month.
This graph shows how the under contract list price average has changed over the past year–prices were going up for some time, but now in June, prices are beginning to fall–we expect a downward decline over the next few months (at least).
There are approximately 9510 pending sales and since June 1, 2022 there have been 6891 closed sales. Here are some other key sold stats:
- Average days on market for recently closed sales: 28–this number is sure to rise
- Average dollars per square foot obtained at sale: $292
- Average list to sale price ratio: 1.0
- Average sale price: $598,466
This graph shows the months of inventory based upon closed sales.
Inventory in most price ranges is increasing. Per Cromford Public, active supply of homes priced over $400K is up146% year over year. We expect inventory to continue to increase in the short-term–made up of mostly owner occupants who are trying to capitalize before the market takes a 180 degree turn and flippers–indeed, flippers will feel the most pressure as the days on market climbs and competing properties hit the market. There is still very little distressed inventory on the market.
Pre-foreclosures are up 300% since last year, but these type of listings make up a very small portion of active inventory. There are currently fewer than 40 distressed properties on the market–this amounts to just .002 percent of total inventory.
It’s hard not to think about 2008 as we head into a recession, but there are some factors that are much different this time around in terms of real estate and lending. Owners have more equity than in 2008 and there are far fewer adjustable loans in play; also, most folks have had to put down a fair amount of money to get a loan. There is still a lack of new construction available and with the economy changing, even fewer homes will be built. Arizona is an attractive place to move at the moment and while inventory is increasing, there should still be decent sales activity this year–it just may take longer to sell homes and sellers will need to be very realistic about pricing.
Thanks for checking out our Phoenix metro market update–if you have questions about Arizona real estate, please reach out anytime.