Exploring the Shifting Landscape: Understanding Current Market Trends

By Jason Penrose

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

We’re discussing the real estate market for the month of October. Currently, the market is experiencing conditions unlike anything we’ve seen in the past two decades.

As of November 3, there were 17,717 homes available for sale, compared to 22,720 last year, representing a 22% decrease in active inventory. Pending homes are at 5,980 this year, down 8% from 6,525 last year. Homes sold this year are on track for 72,851, a 21% decrease from 93,612 last year. The supply of inventory for home sales has decreased by 19%, from 3.6 months last year to 2.9 months now.

In summary, we have roughly 20% fewer homes for sale, approximately 8% fewer homes under contract, and a 21% decrease in homes expected to sell this year. The main factor influencing the market is interest rates. We’ve observed significant fluctuations in rates, with recent figures around 8%. Currently, they are hovering at around 7.5% to 7.39%.

The decline in rates is a key factor affecting both buyers and sellers. Many buyers are hesitant to make a move due to higher rates, and sellers are often motivated by life events like job transfers, marriage, family changes, or other circumstances. It’s essential to do the math and assess your equity in your current home to determine if a move is financially viable. Sometimes, the cost isn’t as high as you might think, especially when considering factors like commute time.

If you’re considering making a move in this market and would like to discuss your situation, feel free to call me at (602) 738-9943 or send me an email. I look forward to speaking with you soon.