Phoenix inventory has risen slightly since last month and like other parts of the county, the buying frenzy is starting to mellow out. Let’s dive into our Phoenix metro real estate update for September 2021.
Sales activity is still strong, but we’re not seeing as many over-the-top feeding frenzy type negotiations. Nicely renovated homes that are well located are still commanding top dollar (and in some cases more than the asking price), but it’s not the panic buying situation we saw early in the year.
We are definitely in a sellers market but this could shift in the coming months. There were approximately 7000 active listings across the Phoenix metro area last month and today there are a little more than 7200–we actually got close to 8000 earlier in the month. There are 818 “coming soon” properties and 12,572 that are under contract–pending sales are up slightly from last month. As you can see in the graph below, we were sitting at around 1.4 month’s supply of homes the same time last year–last month there was less than one month’s supply of available homes.
For folks looking to sell and rent, the situation is not good–as of today, there are less than 2900 properties for rent around the county–this includes all housing product types. There are of course other rental options outside the MLS, but in general, rental inventory is very low.
Here are a few MLS highlights for September:
- 7879 recently closed sales
- 1.01–average list to sale price ratio
- $298/SF average per square foot obtained at sale
- 28 days on market–recently closed sales–this number is up one day from last month
Home loan rates have risen slightly over the past week. The current national average for a 30 year fixed rate mortgage (FRM) is 3.16%. The 15 year FRM is 2.60% and the rate for a 5/1 ARM is 2.75%–rates will vary depending upon FICO score, income, assets, job history, etc.
Overall, home sales across Maricopa County are brisk, but we expect continued “cooling” of the market. Going into fall, we hope to see increased inventory with home loan rates holding somewhat steady. Thanks for checking out our Phoenix metro real estate update. If you have any real estate questions, please reach out anytime.