Tap Into Phoenix Real Estate: Market Insights & Opportunities - Feb 2024 Update

The winds of change are stirring...Let's see if sellers should be concerned.

Welcome to our latest exploration of the Phoenix residential real estate market. As we peel back the layers of this dynamic landscape, our goal is not just to inform but to empower you with knowledge that transforms the way you think about buying, selling, and investing in property. Let's dive into the numbers that paint a picture of our current market situation and compare these figures with past years to glean insights into where we might be heading.

Key Market Statistics:

  • Active Listings:  As of the latest data, there are 1,622 active listings in the Phoenix area. This is a slight increase from last year's figure of 14,960, signaling a moderate rise in inventory.
  • Listings Under Contract or Pending: A total of 8,433 properties are currently under contract or pending, showcasing the continued demand in the housing market.
  • Recent Closings: In the past 30 days, 5,665 homes have successfully closed. This number helps us calculate the Month Supply of Inventory (MSI), which currently stands at 2.93. This MSI indicates that if no new homes were listed, it would take just under three months for all existing inventory to be sold, assuming sales continue at the current pace.
  • February Closings: February 2024 saw 5,726 closings, almost identical to the number in February 2023. This stability in closings year-over-year is noteworthy, yet the average sales price tells a more dramatic story.
  • Average Sales Price: The average sales price in February 2023 was $524,000. Fast forward to February 2024, and that figure has jumped to $580,000, marking a significant 10.6% increase.
  • Longer-term Price Trends: Looking back to February 2022, there were 7,993 homes sold at an average price of $562,000. Comparing this to February 2024, we observe a more modest overall increase of 3.2% over two years, averaging out to a 1.6% annual increase in home values.
  • Sales-to-List Price Ratio: This year, the sales-to-list price ratio stands at 98%, slightly up from last year's 97%, indicating that homes are selling very close to their asking prices.
  • Days on Market: Homes are selling faster this year, with an average of 66 days on the market compared to 78 days last year.

Emerging Trends:

One significant trend we've observed is the increasing number of active listings since January, contrary to the usual seasonal decrease in inventory. This shift could suggest a future where supply outpaces demand, potentially putting downward pressure on prices. However, the current surge in demand, reflected by a substantial increase in pending listings, may balance this out for now.

Another crucial factor shaping the market is the prevalence of new construction. Builders are aggressively courting buyers with compelling incentives, making it challenging for resale homes to compete in certain areas. This trend towards new construction is reshaping the competitive landscape and could significantly influence market dynamics moving forward.

Conclusion:

As we navigate these shifting sands, remember that knowledge is power. Whether you're looking to buy, sell, or simply stay informed, understanding these trends can help you make decisions that align with your real estate goals and aspirations.

If you have any questions or need further clarification on how these trends might affect you personally, don't hesitate to reach out. Together, we can chart a course through the Phoenix real estate market with confidence and clarity.

Do you have the itch to invest?

Let's scratch that itch! Are you just now stepping into the investing realm? I'll show you the ropes and be your right-hand-man through the process. 

If you're an experienced investor, it would be great to connect with you and pass ideas back and forth. I want to expand my network!

Shoot me a message on here and we can talk about how to work together. 

Book a 30 minute investment meeting

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Post a Comment