Andrew Robb | Andrew Robb RE/MAX Fine Properties Andrew Robb | Andrew Robb RE/MAX Fine Properties

Phoenix Real Estate Report

phoenix real estate market update
1. How fast are homes selling? Average number of days on market is 27 (down 2 days from last year)
2. How many homes are for sale? We currently have 8,541 properties for sale (up 15% from last year)
3. What is the average sales price? Homes across the city are selling for $591,709 (up 19.6% from last year)

April’s supply was down 1.9% from April 2021 (with 11,181 homes listed for sale last month) and April’s demand was down 8.8% from April 2021 (with 9,306 homes sold last month). Average home values increased almost 20% in the last year but we still have only 0.93 months of inventory, which is up from 0.82 this time last year. Under 2 months supply is a seller’s market, between 2 and 4 months is a balanced market, and over 4 months is a buyer’s market. The fact we constantly remain under 1 month of inventory (though on the rise) is impressive.

What is going on? Over the past few years, we repeatedly described our local housing market as on fire. We concluded each newsletter with a familiar refrain: sellers’ markets don’t last forever and the market will eventually shift but we don’t know when. We routinely referenced interest rates as the wildcard. The when is probably now. Mortgage rates hit a new 13-year high, with the 30-year fixed-rate mortgage averaging 5.91%, up from 2.96% a year ago. With much higher monthly payments, buyers who don’t have savings for a large down payment risk being priced out of the market. Unfortunately, this is occurring just as rents reach an all-time high, making saving more difficult for those looking to buy their first home. Recently released numbers from the Bureau of Labor Statistics show Phoenix leading the nation with prices 11% higher this April compared to April 2021. When you combine rising interest rates, record home prices and record inflation, homebuyer faces a triple-edged sword.

What is going to happen? When the housing market moves from a sellers’ market to a balanced market, demand softens first- and a drop in demand is what we’re seeing. On May 1, demand was down 7.9% year over year, with supply up 10.6% year over year. Today, supply is 21% higher than last year, suggesting our market is cooling. This means current listings are staying active longer and inventory is starting to build in most (but not all) segments. While the number of homes for sale remains very far below normal, we have seen before how it can increase sharply if more sellers emerge just as demand is declining.

Parting thoughts Fannie Mae’s Senior Vice President and Chief Economist released a statement: In April, the Home Purchase Sentiment Index fell to its lowest level since the first few months of the pandemic, as consumers continue to report difficult homebuying conditions amid the budget-tightening constraints of inflation, higher mortgage rates and high home price appreciation. The current lack of entry-level supply and the rapid uptick in mortgage rates appear to be adversely impacting potential first-time homebuyers, evidenced by the larger share of younger responses (aged 18-34) reporting that it’s a “bad time to buy a home.”

Data from ARMLS® COPYRIGHT 2022.

5923 W GARDEN DR, Glendale

* SOLD FOR FULL PRICE * Upgraded home in great central location, with lots of space and vaulted ceilings. Master bedroom features large sitting area and walk-in closet, plus sliding glass door to back yard. Two additional bedrooms and office offers work from home flexibility. Easy to keep clean with tile and laminate flooring. Mature landscaping all around for privacy. Windows are dual pane, roof and HVAC are about 10 years old.

Glendale AZ home for sale, marketed by Glendale AZ Realtor Andrew Robb.

Listing Price: $450,000
MLS #: 6387786
Address: 5923 W GARDEN DR
City: Glendale
State: AZ
ZIP: 85304
Home Size: 1,719
Lot Size: 7,000
Bedrooms: 3
Bathrooms: 2
Garages: 2
Pool: N

9551 N 82ND LN, Peoria

* SOLD FOR $10k OVER ASKING * 3 bedrooms, loft/den upstairs, 2.5 bathrooms, huge open kitchen & easy maintenance back yard. Everything has been tastefully done for you: exterior painted Dec 2021, new Trane HVAC entire system Jun 2021 (10-year parts & 5-year labor warranty), all kitchen & bathroom cabinets refinished Dec 2021, new farmhouse kitchen sink & faucet, new faucets in all bathrooms, new light fixtures throughout, new family room flooring Dec 2021 & carpet professionally cleaned Jan 2022. Incredible value at only $222 per square foot!

Peoria AZ home for sale, marketed by Peoria AZ Realtor Andrew Robb.

Listing Price: $389,000
MLS #: 6339427
Address: 9551 N 82ND LN
City: Peoria
State: AZ
ZIP: 85345
Home Size: 1,752
Lot Size: 3,235
Bedrooms: 3
Bathrooms: 2.5
Garages: 2
Pool: N

15620 N 165TH DR, Surprise

* SOLD FOR ASKING PRICE * Delightful home with vaulted ceilings & no neighbors behind has been lovingly cared for: new pool filter & salt system (Sep 2015), exterior painted (Feb 2016), new Trane AC (Nov 2016), air ducts cleaned (Aug 2017), new dishwasher & garbage disposal (Nov 2019), new carpet & upgraded pad throughout (Sep 2021). Large eat-in kitchen features stainless appliances & under cabinet lights with remote control. Third bedroom configured as office/den: has closet with door & room is open to hallway. Master bedroom has bay window overlooking 15’x30′ green pebble-tec pool & surrounded by mature landscaping with artificial turf. Relax outside on expanded patio that includes professional misting system. Quick & easy access to loop 303.

Surprise AZ home for sale, marketed by Surprise AZ Realtor Andrew Robb.

Listing Price: $425,000
MLS #: 6289414
Address: 15620 N 165TH DR
City: Surprise
State: AZ
ZIP: 85388
Home Size: 1,621
Lot Size: 5,830
Bedrooms: 3
Bathrooms: 2
Garages: 2
Pool: Y

10101 N ARABIAN TRL 1049, Scottsdale

* SOLD FOR $11k OVER ASKING * Completely remodeled condo offers the finest on-trend finishes & utmost attention to detail: 7” wide plank hardwood floors, custom designed stone & tile fireplace with with built-in cabinetry. Bright gourmet kitchen has granite countertops, breakfast bar, stainless appliances & is open to living room, making it perfect for entertaining. Master bedroom boasts stunning ensuite & walk-in closet. Spacious split floorplan & desirable ground floor unit, with private 1-car garage. Casabella complex offers 2 pools, spa, lighted tennis court, fitness Center, club house & lush resort-style grounds. Easy access to 101 freeway, lots of retail, tons of restaurants, grocery stores, parks & walking/bike path that goes all the way to Tempe, plus 8 golf courses & Talking Stick Resort are within 15 minutes.

Scottsdale condo for sale, marketed by Scottsdale Realtor Andrew Robb.

Listing Price: $399,000
MLS #: 6277715
Address: 10101 N ARABIAN TRL 1049
City: Scottsdale
State: AZ
ZIP: 85258
Home Size: 1,055
Lot Size: 1,048
Bedrooms: 2
Bathrooms: 2
Garages: 1
Pool: Y
Andrew Robb - RE/MAX Fine Properties, 21020 N Pima Rd, Scottsdale AZ 85255