Q3 Real Estate Report: Unprecedented Numbers

By Jason Penrose

Jason has been licensed since 1999, and is currently one of the top 20 agents in Arizona for homes sold.

Welcome to another episode of Jason Penrose TV! Today, we’re diving deep into the numbers as we wrap up the third quarter of the year. Brace yourselves; these figures are unlike anything we’ve seen in the last two decades.

Q3 at a Glance:

As we bid farewell to September, let’s break down the key statistics that have defined the real estate landscape:

Active Listings: 15,703, down 30% from last year.

Pending Listings: 6,644, marking a 10% decrease.

Sold Homes: 5,766, an 8.8% dip from the previous year.

Months Supply of Inventory: 2.3 months, down 28% from last year.

Typically, low inventory indicates a seller’s market, where prices rise due to high demand. Conversely, when demand is low, it’s a buyer’s market, causing prices to drop. However, what makes this year unique is the simultaneous occurrence of low inventory and low demand.

The reason behind this anomaly? Mortgage rates currently stand at over 7.5%, making homeownership unattainable for many potential buyers. Surprisingly, about 90% of homeowners hold rates under 5%, reducing their incentive to sell unless major life changes, such as job transfers, illnesses, or divorce, force them to move.

So, what could potentially unstick this complex market? Historically, when the Fed raises rates, it tends to trigger a recession, ultimately leading more people to sell their homes out of necessity. With the current record-low housing affordability, a correction might be on the horizon.

However, there are still buyers in the market, especially those relocating from other states, as housing remains relatively affordable compared to larger cities.

The real estate market is in a state of flux, neither strictly favoring buyers nor sellers. If you’re considering buying or selling a property and need guidance on the current market conditions, please don’t hesitate to reach out. Call us at 602-738-9943 for expert advice tailored to your unique situation.