Here’s the latest data and info from our Phoenix real estate market.
Something is cooling off, and it’s not our Arizona temperatures. In our Phoenix real estate market, we’ve experienced a slight shift from what we’ve been seeing for the past year. We use a couple of indicators to judge how our market is doing, and the first is the average days on market. That’s the number of days a listing stays on the market, but that data is generally about six months behind what’s currently happening in the market.
The second indicator we use is the listing success rate, and it’s at 91% right now, which decreased from our peak in May at 93%. The common number is around 66%, so we have a ways to go before we would consider this to be a balanced market. Our active listings are still at record lows, but they’re improving fairly quickly. We’ve also noticed that buyers have lost a bit of motivation, and we attribute this to the rise in temperatures, bidding wars, higher prices, and the world opening back up from the pandemic. Some people are temporarily putting their real estate plans on hold.
Sellers will still get excellent prices for their homes, but it may take a little longer due to the reduction in showings. For example, I had a listing in a very high-demand area, but we had very few showings. We ended up securing an offer at full price, but it was on day 14, whereas before we were getting full price or over list price on day one.
All this shows we’re moving toward a market that favors buyers a bit more. Buyers aren’t having to compete like before, and the chances of you needing to waive the appraisal contingency are slim. You likely won’t need to pay over list price like we’ve been seeing the past few months.
The question is, is the shift here to stay, or will we heat back up as we head into autumn? We would love the opportunity to assist you, whether you’re ready to buy or sell. You can always search our website for properties, or call or email us with any questions or real estate needs. We look forward to speaking with you.