Average Phoenix home values INCREASED by 6.2% since 2022
The final numbers for October's Phoenix residential housing market are in, and it's time to explore whether it's currently a buyer's or a seller's market, even in the face of high interest rates. As the market adjusts, with an increase in active listings to 15,176 and a decline in the listing success rate to 75%, the landscape is evolving – potentially dipping to a 66% success rate in the upcoming months.
The current market snapshot shows 6,019 listings under contract and 5,149 homes sold in the past month, leading to a month's supply inventory of 2.95%. Despite apparent challenges, it remains a seller's market. The inventory is tighter than last year, and a potential interest rate decrease could sharply increase demand.
October's statistics revealed 5,157 closings with an average home price of $575,000 and a median of $540,000. Although the sales volume has slightly decreased from October last year, the average price has seen an 11.6% increase over two years. This trend continues amidst high interest rates, hinting at a persistent housing shortage.
Shifting to the renting vs. buying debate, we examine a Wall Street Journal article's viewpoint on the current cost discrepancies influenced by high-interest rates. Yet, we delve deeper, considering home appreciation and long-term financial gains, which are crucial when contemplating the benefits of buying over renting.
We'll also dissect a real-life scenario, analyzing the financials of owning a $445,000 listed home against renting the same for $2,000 per month. This comparison aims to shed light on the long-term advantages of buying a home, which could significantly impact your financial decision-making.