The Phoenix residential real estate market experienced notable changes in June 2024, reflecting a dynamic environment influenced by various economic factors. Below is a detailed analysis of the key metrics and trends observed in the market:
Total Home Sales: In June 2024, the total number of homes sold in the Phoenix area was 6,318. This represents a significant 16% decrease from May’s 7,531 sales. This downturn is not uncommon as the market adjusts from the peak spring selling season and heads into the typically slower summer months.
Median Home Sales Price: The median home sales price remained steady at $450,000 for June 2024, indicating stability in the market despite the decline in sales volume. This stability in median pricing suggests that demand remains robust, particularly in specific price brackets.
Average Home Sales Price: The average home sales price saw a slight decline to $592,885 from $598,802 in May. This decrease indicates some variability in the types of homes sold, with possibly fewer high-end properties changing hands during this period.
New Listings: The market saw 8,115 new listings in June 2024, down from 9,326 in May. This reduction in new listings could contribute to a tighter inventory in the coming months if the trend continues, affecting supply and potentially driving up prices.
Median and Average New Listing Prices: The median list price for new listings in June was $469,000, slightly lower than May’s $475,000. Similarly, the average list price for new listings decreased to $623,035 from $657,829 in May. These adjustments suggest a slight moderation in seller expectations or a shift in the types of properties being listed.
Current Inventory Levels: Inventory levels remained relatively stable, with 17,833 homes available in June 2024, a marginal increase from 17,783 in May. This figure is still significantly higher than the same period last year, reflecting a 51% year-over-year increase in inventory, providing buyers with more options.
Percentage of Asking Price Received: Sellers in June received an average of 98% of their asking prices, consistent with the previous month. This steady percentage indicates that sellers are pricing their homes appropriately and buyers are willing to meet those prices.
Average Days on Market: The average time a home spent on the market in June was 62 days, slightly up from 61 days in May. This minor increase is typical for this time of year as the market begins to cool off following the busy spring season.
Absorption Rate: The absorption rate in June 2024 was 2.82 months, an increase from May’s 2.36 months. This rise in the absorption rate suggests that homes are selling more slowly, which could be attributed to the growing inventory and seasonal trends.
Cash Sales: Cash transactions continued to be a significant part of the market, with cash sales making up 97% of the list price, and the median cash sales price was $467,000. The proportion of cash sales indicates strong investor activity and confidence in the market.
Foreclosure Rates: Foreclosure rates remained low at 0.4%, unchanged from May. This minimal rate highlights the ongoing strength and stability of the Phoenix housing market, with very few distressed properties entering the market.
Market Outlook
As we move further into the summer months, the Phoenix real estate market is expected to experience the typical seasonal slowdown. However, the stability in median home prices and the slight moderation in new listing prices suggest that the market remains resilient. Buyers and sellers alike should remain informed about market trends to make strategic decisions. With interest rates playing a crucial role, any shifts could further impact market dynamics.
Conclusion
Despite the seasonal adjustments, the Phoenix residential real estate market demonstrates strong underlying fundamentals. With careful planning and expert guidance, both buyers and sellers can navigate this market successfully.
For those considering entering the market, whether buying or selling, now is an opportune time to consult with a seasoned real estate professional. Understanding the nuances of the Phoenix real estate landscape can make a significant difference in achieving your real estate goals. Contact me at 480-888-1234 to discuss your specific needs and explore the opportunities available in this vibrant market.