According to the folks that run the Cromford Report, we may be heading into another sellers market. Let’s dive into our Phoenix metro real estate report for March 2023 and see what the numbers say. At the end of February, there were 14,800 active listings–as of March 31, 2023, there are 13,905–this is the lowest level of housing inventory since last October when inventory was sitting at nearly 21,000 units.
The active listings have been on market for an average of 86 days–down slightly from last month. There are 8984 pending sales which is down from 9593 last month; however, the total number of sales in the past 30 days has increased 33%. Since March 1 there have been 7532 closed sales with three sold indicators that the market might be shifting:
- Average days on market: 76–down from 81
- Average sold price per square foot: $362–up from $332
- Average list to sale price ratio: .98–up from .97
One reason for falling inventory could be an increase in canceled listings though this may change quickly if rates drop or remain at current levels. This chart shows the number of cancelled listings over the past few years–there has been an increase in the past month–we’ll have to see what happens in the next few weeks.
With recent bank failures, continued inflation and low confidence in the dollar, it is very difficult to say what our market will look like in 3-6 months. In the short term, we believe sales will continue at a decent clip and will increase sharply if mortgage rates drop anywhere in the five percent range. Thank you for reviewing our Phoenix metro real estate report for March 2023. If you have a real estate question or need, do not hesitate to reach out.