Welcome to our Phoenix Real Estate Update! Here, you'll find the most up-to-date information on the Phoenix real estate market to help you make informed decisions about whether you're buying or selling a home. Be sure to visit our YouTube channel for more valuable insights on the Greater Phoenix area real estate market. We're here to make sure you're well-prepared for your next move!

Population Growth in Phoenix

Phoenix has seen significant population growth over the years. In 1950, the population was only 221,000. Today, the population is approximately 4.6 million, with forecasts projecting it to reach 5.3 million by 2035. The rapid growth of industries like tech and construction has made Phoenix an attractive destination for new residents, driving the demand for homes in the area.

Phoenix's Booming Economy

Phoenix has a thriving economy, marked by low unemployment rates and strong wage growth. As of 2023, the unemployment rate stands at 2.9%, which is lower than the national average. This healthy job market, coupled with a 7.5% increase in wages, demonstrates the city's economic strength.

Mortgage Application Trends

Since May 2022 there has been a decline in mortgage applications for home purchases. This decline is attributed to rising interest rates, which have made it more expensive for potential homebuyers to enter the market. Despite this trend, Phoenix remains a popular destination for homebuyers, thanks in part to its strong local economy and growing population.

Housing Market Dynamics

The median home price in Phoenix has experienced fluctuations in recent years. In May 2022, the median price reached its peak but has since declined to around $420,000. The market has shown signs of stabilization starting in January 2023, with the number of listings remaining well below average levels. This limited inventory has led to increased competition among homebuyers, keeping prices elevated in some instances.

Seller Concessions

As the market becomes more competitive, seller concessions have become more common. In fact, seller concessions are near an all-time high (around 49% of all purchase transactions have seller concessions). Sellers are offering an average of $5,000 in concessions to potential buyers. This trend can make it more affordable for homebuyers to enter the market, as they may receive financial assistance with closing costs and prepaid taxes and insurance.

Average Days on the Market

For sellers, the average time it takes to sell a home in Phoenix is around 65 days. This figure is consistent with the 20-year average, indicating a stable market. However, during periods of high demand, such as in 2020 and 2021, homes sold much more quickly, with some properties staying on the market for as few as 30 days.

Understanding the Current Market Supply

One way to gauge the health of the Phoenix real estate market is by looking at the months of supply. This metric represents how long it would take for all active listings to be sold if no new homes were listed. Currently, the Phoenix market has about 2.2 months of supply, which is relatively low compared to historical standards. This suggests that buyers may have to act quickly to secure a property, but it also means that sellers can expect their homes to sell relatively fast.

Rising Rental Rates in Maricopa County

Over the past few years, rental rates in Maricopa County have increased significantly, making it more challenging for tenants to find affordable housing. A 2,000-square-foot home in Maricopa County was rented for $1,600 in 2015, today in April 2023 that same home would rent for $2600. As a result, many people are considering buying a home instead of continuing to rent. With various financing options available, such as conventional loans, VA mortgages, and FHA home loans, potential home buyers have more choices than ever to find a suitable mortgage.

Low Foreclosure Rates in the Phoenix Area

Despite concerns about high foreclosure rates, the current number of foreclosures in the Phoenix area is at a record low. This is good news for both buyers and sellers, as it indicates a healthy and stable housing market. If you're considering purchasing a home in Phoenix, you can be confident that the market is strong and not plagued by high foreclosure rates.

Most Desirable Neighborhoods in Phoenix

As the Phoenix real estate market continues to evolve, certain neighborhoods are experiencing higher buyer demand than others. Some of the top areas include Chandler, Mesa, Gilbert, and Peoria. If you're considering buying or selling a home in the Greater Phoenix area, it's essential to research these neighborhoods and their specific market conditions.

Conclusion

The Phoenix real estate market is dynamic and ever-changing, making it crucial for buyers and sellers to stay informed. With our Phoenix Real Estate Update, we aim to provide you with the latest information and trends to help you make the best decision for your needs. Don't forget to check out our Google reviews to see what our clients have to say about their experiences working with us. If you have any questions or need assistance, don't hesitate to contact us.

Source: Cromford Report ©, Freddie Mac, and the Economic Research at The Federal Reserve Bank of St. Louis.

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