By Emily Call, Senior Editor
As the housing market continues to fluctuate, August has proven to be a big month for the Phoenix area. According to the latest data from the August RE/MAX National Housing Report, Phoenix is topping a few key benchmarks including new home listings growth, declining closed home sales, increased inventory, and an overall balancing of market conditions. To help navigate and understand these shifts, here’s a breakdown of key trends to watch.
Biggest Increase in New Listings
Phoenix has set a record with the largest year-over-year increase in new home listings, showing an impressive +25.0% surge from August 2023. This notable rise marks a significant shift in market dynamics, creating a more favorable market for prospective buyers. However, the influx of new listings means a more competitive environment for sellers and more room for price negotiation from buyers.
Decline in Closed Home Sales
Phoenix has reported the second-largest year-over-year decline in closed home sales, experiencing a drop of -10.1%. This downturn mirrors broader market trends but has also created speculation on the market’s resilience. Despite the dip in completed sales, the steady flow of new listings is an indicator the market may be balancing out as time progresses.
Home Prices and Overall Market Continue to Stabilize
The median sales price in Phoenix is now sitting at $440,000, reflecting a 1.1% decrease from July but a 3.5% increase from August 2023 numbers. This trend reflects a complex, yet steady price structure in the area. Notably, the median sales price has been consistently higher year-over-year for the past 14 months, demonstrating a trend towards long-term stability.
Inventory Continues to Grow
Inventory levels in Phoenix have experienced growth for the sixth consecutive month, improving by 2.4% since July and a substantial 37.6% rise from August 2023. This increase brings buyers a broader range of options and supporting a more balanced market environment. The months’ supply of inventory stands at 2.4, up from 1.7 in August 2023, suggesting a transition towards market equilibrium.
Market Shifts Towards a Buyer Advantage
The current market dynamics in Phoenix increasingly favor buyers, as the surge in new listings provides significant negotiation leverage. More choices mean buyers can walk away from unfavorable deals with confidence that something else on the market will meet their needs. On average, buyers are securing homes at 99% of the asking price, indicating a strong market with some room for flexibility.
Experts Are Positive About the Phoenix Market
Industry leaders are taking note of Phoenix’s evolving market. Amy Lessinger, President of RE/MAX, LLC, states, “The robust increase in listings coupled with strategic price adjustments is a testament to the market’s adaptability and resilience during dynamic economic times.”
The Bottom Line
As the market gains momentum in favor of buyers, alongside lowering interest rates, buyers will find themselves in a much stronger position to find excellent home opportunities with the ability to negotiate.
