Housing inventory is up 13% from last month–today there are 13,969 active listings across Maricopa County. Let’s dive into our Phoenix metro real estate update for September 2023. So, what’s driving the increase in inventory? My hunch is that the shift in the market is causing sellers to jump on board before values begin to drop. Also, there are a number of short term rental homes that have been listed for sale. Unless interest rates drop a point or more, we may see a slow, but continued build-up of inventory.
The active listings have been on the market for an average of 76 days and the average asking price per square foot is $503–this figure should come down over the next few months. There are 6743 pending sales–down from 7310 last month. There are 653 “coming soon” listings and there are 68 active, distressed property listings.
This graph shows how the average days on market has changed for closed sales.
From 9/1 to 9/30 there have been 5573 sales–down from 6240 last month. Here are some MLS stats for recently closed sales:
- Average days on market: 55
- Average sold price per square foot: $274
- Average list to sale price ratio: .99
Summary
Given the current interest rate environment and the slow, but steady build up of housing inventory, we feel that in the short term, values will drop. With so much uncertainty in the world and with the holidays approaching, this final quarter could be slower than normal. We are seeing more price reductions, more seller concessions being offered and a flattening out of the market. Thank you for checking out our Phoenix metro real estate update for September 2023.
