Real Estate Market Update
It’s hot in Arizona, and the real estate market is settling into a steady simmer. So far, this year has shown the Phoenix real estate market steady results and forecasting. Let’s do a quick, general market recap with some facts and figures in the Phoenix area:
Analysis of the Competitive Phoenix Market
Lately, the housing market here in Phoenix, AZ is somewhat competitive. According to an article from Norada Real Estate Investments, it’s currently a seller’s market. The demand for homes due to an influx of people moving to Arizona is outpacing the inventory available in the housing market. Construction is having trouble keeping up with demand associated with epopulation growth. Current homeowners are also staying put, due to reasons like the uncertain future of interest rates or current affordability of their own home. Interest rates stabilized in 2024 compared to the volatility of 2023, but they remain higher at this time than other historic lows.
More on Local Population Growth
Secondly, the job market in Phoenix is seeing growth in the manufacturing and tech sectors. This contributes to the increasing population and offers potentially increased discretionary income levels, since these jobs typically have higher wages. This can provide some buyer power in certain segments of the market.
Value of Real Estate
So, we know that inventory levels are low and buyer demand is relatively high. We’ve found some important data on the Phoenix real estate market from Redfin:
- Median Price per Square Foot: $285 in April, a 2.5% increase from the previous year.
- Average Home Value: $453,000 in May, up 6.5% year-over-year.
- Home Sales: “Hot” homes sell in 20 days, the average home sells in 44 days
As mentioned, homes are quickly going off-market. “Hot” homes often sell around their list prices and the average home sees two offers. Short-term projections estimate a growth in real estate value from continued buyer demand and lower inventory levels. Forecasts for 2024 as a whole suggest that the entire Metropolitan Statistical Area (MSA) will see a modest increase of 1.5% in home prices.
Conclusion
The Phoenix real estate market is strong, characterized by strong buyer demand, low inventory, and a competitive environment favoring sellers. With continued population growth and a strong job market, real estate values are expected to see modest gains soon. Buyers should be prepared to act quickly in this fast-moving market.
If you’re in the market to buy or sell, our team is ready to assist you on your journey! Please reach out to us at any time. Contact us at 602-903-7220 or visit our website to get in touch! Not to mention, follow us on Instagram and Facebook for the latest updates on North Central Phoenix, market insights, real estate news, and so much more.
