By Sheryl Bowden, President of the Board of Directors for Phoenix REALTORS®
A predominantly positive residential real estate outlook from spring has carried over to the summer for both buyers and sellers in Greater Phoenix. Compared to 2023’s decline in home sales and listings, trends in 2024 have — and continue — to remain encouraging throughout the Valley. Recent Phoenix REALTORS® data identified three residential housing trends tracking Valley-wide: a rise in new listings, an uptick in median home prices and an increase in closed sales.
Home Listings Increase Compared to Last Year
A rise in inventory is boosting prospects for buyers who have had limited options for the past year. Sellers are demonstrating greater confidence in the housing market due to more favorable market conditions and steady median home values. Compared to last year, new listings have steadily risen. Coming off the spring season, the ascent in housing supply crept close to 45% more this year than last year.
The healthy inventory of listings combined with a decreased number of days homes remain on the market is motivating sellers and attracting buyers.
Value Home Prices
There is more good news for homeowners considering selling. Home prices — which skyrocketed during and after the pandemic — continue to rise. During spring 2024 the median home price for Greater Phoenix stood at $490,000 compared to $455,646 the same time last year.
Interestingly, however, median sales prices per city — while collectively favorable — vary widely. Scottsdale’s median sales price in April was $1.2 million, compared to $800,000 in Gilbert, $500,000 in Phoenix, $488,000 in Goodyear, $434,500 in San Tan Valley and $430,000 in Surprise.
The wide range of median prices throughout the Valley reflects the diversity of the real estate market as well as pockets of growth and revitalization. As one of the fastest-growing regions in the state, the West Valley is a perfect example of this trend.
Rise in Home Sales
Summer has always been a strong time for home sales before folks dive into their summer plans and the school year and graduations wrap up.
Overall, the inventory of homes for sale in Greater Phoenix has been the highest reflected within the last 12 months. Of significance, closed sales in year-over-year comparisons increased 4% to 5,550 homes this spring. Additionally, closed sales remained strong at 99% of the asking price.
With the boom in development throughout the Valley, inviting more employment opportunities in a range of industries including technology, manufacturing, construction and healthcare, we can likely anticipate home sales to continue to thrive. The only major exception to the optimistic trends we saw in spring transitioning into summer continues to be the Federal Reserve holding back on lowering interest rates, keeping a portion of buyers out of the market this summer (with no end in sight).
Currently, it’s a healthy market for sellers, and as such a time to seize opportunities before temperatures and costs creep higher.
Sheryl Bowden is president of the Board of Directors of Phoenix REALTORS®, a member-first organization serving more than 11,000 real estate sales professionals in the Valley. More at PhoenixRealtors.com.
