Just as we saw in September, the trend currently is that housing inventory is increasing around the valley–including areas like Scottsdale and Paradise Valley. Let’s dig into our Phoenix metro market update for sales data in October of 2024. There are currently 21,750 active listings which have been on the market for an average of 80 days. There are just over 500 “coming soon” listings and 6842 homes under contract–pending sales have not dropped much in the past 30 days.
From October 1, 2024 to October 31, there were 5847 closed sales–up from 4921 for September. Phoenix as a city is in a weak seller’s market (in some areas) while the vast majority of cities and towns are either in a balanced state or buyer’s market. There are definitely some areas of Phoenix that are flat or trending downward slightly. Here are some MLS stats for recently closed sales:
- Average days on market: 71
- Average sold price per square foot: $287
- Average list to sale price ratio: .98
- Average sold price: $578,503
This graph shows how the median list price has changed in the Phoenix metro area over the past two years–there has been a steady decline since April of 2024.
With interest rates still hovering around 6.5%, prices (nor interest rates) have come down enough to increase demand–indeed, supply is exceeding demand for just the third time in the past decade and a half. On a positive note for buyers there are some trends to note:
- The average sold price per square foot has dropped
- The number of sales over the asking price has decreased
- The amount of seller concessions offered and the percentage of sellers offering concessions has gone up
Market Summary
Interest rates have not moved enough to get buyers off the fence and consequently the supply of homes available now exceeds demand. Perhaps the Fed will decrease rates in December and if this move leads to lower mortgage rates, we should see some energy return to the housing market in mid-January. For now, we expect to see more homes hit the market, slower sale times and a continued offering of seller concessions.
