Here’s what I’m keeping an eye on in Phoenix real estate.
The April numbers are in for the Phoenix real estate market, and today I’m comparing today’s crazy stats to what we were seeing at this time in 2021. Here are the key numbers to know:
- We had 11,770 active properties on the market this year vs. 12,368 last year. That’s a 4.9% decrease.
- New properties are down slightly from 11,397 last year to 11,080 this year.
- Home sales are down 8.9%, from 10,204 to 9.296
- Months’ supply of inventory jumped slightly from 1.21 to 1.27 months.
We have fewer homes on the market, which means fewer sales. Rising interest rates have also pushed some buyers out of the market and stopped them from buying.
Buyers’ purchasing power has dropped well over 20% this year alone. If you’re thinking about buying, you’ll need to decide whether or not you can afford the higher payment with a higher rate. If you can’t, you’ll have to decrease your purchase price to keep the payment affordable.
Most people will choose the latter. Because of that, we’re seeing a slight softening in the market. Some price ranges are still seeing bidding wars. In others, homes are sitting on the market at reduced prices.
If you have any questions about buying or selling in this market, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.