Sales Market
Latest: April 2024
The Phoenix housing market remains buoyant, characterized by appreciating property values and a competitive landscape, driven by continued population growth and high interest from buyers relocating from other major cities. Here are the main points reflecting the current state of the market:
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Home Prices: As of January 2024, the average home value in the Phoenix-Mesa-Scottsdale area was estimated at $447,074, which marked a modest year-over-year increase of 0.8%. The median list price was around $504,109, while the median sale price was somewhat lower at $435,000 according to the data from December​ (Norada Real Estate Investments)​​ (Realtor)​.
Market Conditions: The market is competitive, with homes generally moving from listing to pending in about 33 days, underscoring a brisk sales pace. Despite a year-over-year decline in inventory of about 15.3%, the available homes numbered 16,879 with 4,981 new listings added as of the end of January 2024​ (Home Buying Institute)​​ (Norada Real Estate Investments)​.
Sales Trends: Properties sold generally fetched 98.99% of their list price, indicating that homes often sell close to their asking price. The market condition has been described as balanced, indicating a relative equilibrium between buyer demand and the number of homes available​ (Realtor)​.
Future Outlook: Looking ahead, the market is projected to see continued growth, with a 6.3% increase in home prices forecasted over the coming year. This optimistic outlook is supported by the area's strong economic fundamentals and desirable living conditions​ (Norada Real Estate Investments)​.
Buyer Advice: For those considering entering the Phoenix market, preparedness for a competitive bidding environment is crucial. With prices expected to continue their upward trend and inventory levels tight, potential buyers should be ready to act quickly and decisively​ (Norada Real Estate Investments)​.
These elements illustrate a market that is both dynamic and robust, presenting opportunities and challenges for buyers and sellers alike in Phoenix.
Rental Market
Latest: April 2024
The rental market in Phoenix is experiencing notable changes, reflecting shifts in both pricing and supply dynamics:
Rental Prices: The median rent in Phoenix has varied across different sources, with figures showing a median rent of approximately $1,981, which represents a decrease from the previous year. This downward trend in rents is a shift from the explosive growth seen in previous years, where rents had increased significantly. As of early 2024, Phoenix rents are generally lower than in other metro-Phoenix cities, and a recent influx of new apartment units may further contribute to more favorable rental rates for tenants​ (Norada Real Estate Investments)​​ (Mobilizing Today’s Talent | Relocity)​.
Market Conditions: The rental market cooling is evident with a reported annual decline in rent by about 4.5% from the previous year. This decline in rental growth rate is higher than the national average, indicating a more significant correction in the Phoenix market. The availability of new apartments, especially, is expected to provide better deals and amenities for renters​ (Mobilizing Today’s Talent | Relocity)​.
Rental Affordability and Supply: Despite the recent decline, Phoenix remains a relatively affordable option compared to many other large cities in the U.S. The supply of new rental properties hitting the market is likely to improve affordability and choice for renters looking for newer or better-situated properties​ (Norada Real Estate Investments)​​ (Mobilizing Today’s Talent | Relocity)​.
Phoenix, AZ, USA