Why Our Market is Starting To Normalize

By Jason Penrose

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

Our market has changed a ton since July. Let’s look over the latest numbers from August to give you an idea of how our market is doing.

There were 23,790 active listings this year in August compared to 14,221 in August 2021. That’s a 167% increase in inventory. 10,286 homes came on the market last month, while 11,152 came on the market this time last year. 6,309 homes sold this August compared to the 9,055 that sold in August 2021. This leaves us with 3.77 months of inventory now. Last year, we had 1.57 months, meaning we’ve seen around a 240% increase in months’ supply.

What’s causing this change? Interest rates. They’ve been moving between 5% and 6%, and since rates have gone up, affordability has taken a hit. There are fewer buyers purchasing homes, and inventory is increasing at the same time. 

There are still over 8,000 homes under contract, so buyers are still buying, and sellers are still selling. While things might be changing, the market is still fluid.

We are transitioning back to a normal market. It feels like our market has been barreling at 100 mph these past five years. Now that we’ve finally slowed down to 60 mph, it might feel like we’re crawling, but in reality, we’re going the speed limit. 

Most newer agents don’t have much experience with this type of market, so if you need to buy or sell, call me. I’ve been through markets like this before, and we’d love to help you get the best possible deal when you buy or sell.