(April 2023 - March 2024)

Market Activity and Price Trends

Active Listings: From April 2023 to March 2024, active listings increased significantly by 20%, with a notable rise in the higher price ranges. This indicates a broadening of available properties, especially in the luxury market.

New Listings: New listings saw a 15.7% increase year-over-year, with the most substantial growth in properties valued over $1 million. This trend demonstrates a confidence in the market among sellers of high-end properties.

Sold Listings: There was an 11% decrease in sold listings year-over-year, suggesting a slight cooling in the market. However, the most considerable declines were seen in the mid-price ranges ($200,000-$399,999), whereas luxury segments ($1,500,000 and up) showed healthy growth, indicating a shift in buyer interest towards high-end properties.

Pricing Analysis

List and Sale Prices: The average list price rose by 9.45% over the year, while the median list price saw a 5.32% increase, indicating a seller's market with rising property values. Similarly, the average sale price increased by 7.15%, and the median sale price by 5.97%, reaffirming the upward trend in actual sale values.

Sale to Original List Price Ratio: The sale to original list price ratio remained stable, with a year-over-year change of -0.5%, suggesting that properties continue to sell close to their listing prices.

Market Pace

Absorption Rate: The absorption rate increased by 33.47% year-over-year, indicating a market where inventory is moving more slowly. This could signal a shift towards a buyer’s market.

Average and Median CDOM: Both the average and median Cumulative Days on Market (CDOM) have decreased over the year, suggesting that properties are selling faster. This could be due to increased demand or more aggressive pricing strategies by sellers.

Segmented Analysis

Affordability Segments: The lower price ranges (below $100,000) have seen mixed changes with some increases and decreases in sold listings, reflecting market volatility in this segment.

Mid-Range Segments: The mid-range segments showed a general decrease in sold and pending listings, indicating less activity and potentially more opportunities for buyers.

High-End Segments: The luxury market displayed significant growth in active and new listings and a steady performance in sold listings, highlighting a sustained interest in premium real estate in Phoenix.

Conclusion

The Phoenix residential real estate market over the last year reflects a complex landscape. While the increase in higher-end listings and sales suggests a robust luxury market, the overall slowdown in absorption rates and a decrease in sold listings in the mid-range market hint at a diversifying and competitive environment. Buyers may find more negotiating power, especially in certain price segments, while sellers of luxury homes seem to be in a favorable position. Real estate professionals should focus on tailored strategies for each market segment, as buyer and seller behaviors vary significantly across different price ranges.

As always, prospective buyers and sellers are advised to consult with a local real estate professional for the most current and personalized information.