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 73 (up 46 days from last year)
2. How many homes are for sale? We currently have 15,789 properties for sale (up 83% from last year)
3. What is the average sales price? Homes across the city are selling for $553,319 (down 6.6% from last year)

April’s supply was down 30% from April 2022 (with 7,863 homes listed for sale last month) and April’s demand was down 28% from April 2022 (with 6,681 homes sold last month). Average home values are now down 6.6% in the last year and we have 2.44 months of inventory, which is about double the amount from this time last year. Under 2 months supply is a seller’s market, 2 to 4 months is a balanced market, and over 4 months is a buyer’s market.

Let’s start with April’s market highlights:
• Sales volume was down 28% year-over-year.
• Sales volume (of 6,681 homes) ranked 19th out of the last 21 years. Only 2007 and 2008 saw lower sale volumes.
• Prices are rising due to restricted supply. We are once again approaching a dire shortage of homes for sale.
• The average sales price rose 2.2% month-over-month and is up 3.7% since January.
• We are projecting a 2.1% month-over-month increase in the average sales price when May’s numbers are reported.
• Institutional buyer activity has shifted away from resale purchases to focusing on build-to-rent properties.
• Our current shining star is new construction. Newly built home sales are up 11.8% year-over-year.

The Fed does it again:
The Federal Reserve recently announced a 25-basis point rate increase, bringing the benchmark federal funds to a level of 5%-5.25%, its highest level in more than 15 years. Their theory is that if it’s more expensive to borrow money or carry a balance on a credit card, consumers will spend less. When spending declines, demand will fall and, eventually, so will the price of everyday goods. According to Lawrence Yun, National Association of Realtor’s Chief Economist: “The latest rate hike by the Federal Reserve is unnecessary and harmful. Consumer price inflation has been decelerating and will continue. There is significant additional monetary policy tightening already occurring. Inflation will not reignite and will come down closer to 3% by year end. We are already moving in the right direction towards consumer price inflation.”

Mortgage rates:
Mortgage rates are on a rollercoaster ride since the beginning of 2023, hitting their bottom on February 2 (6%) and high on March 2 (7.10%) and their bottom on February 2 (6%). Our current rate is 6.5% and the question on everyone’s mind: Where are rates headed? From a recent Forbes piece, here’s what various experts think will happen:
• “rates should gently decline over the course of 2023.”
• “mortgage rates will drop, with the 30-year fixed progressively falling to 6% this year and to 5.6% in 2024.”
• “rates may be at or near their peak, given recent encouraging news around inflation and a corresponding drop in US Treasury yields that help set mortgage rates. A sustained drop could push mortgage rates into the 5% range in the second half of 2023, but that’s definitely not guaranteed.”
• “Long-term rates have already peaked. We expect that 30-year mortgage rates will end 2023 at 5.2%.”
• “Rates will begin to slide into the summer, beginning a slow but steady lowering of interest rates.”

What can we expect? High mortgage rates continue to cast a shadow not only on buyers, but sellers as well. A recent home seller survey found that 82% of prospective sellers are worried about “rate lock,” or having to trade in the ultralow rate on their current home for a much higher one if they were to sell and buy. With restricted supply, home prices are once again on the rise. The average priced home peaked in May-June 2022. Then as interest rates began to climb, prices started to fall. Over the next 7 months, prices fell by 13.7%. As 2023 began, it became obvious that prices were not only stabilizing, but were actually starting to grow. Prices have now risen for 3 consecutive months and will rise again in May.

Data from ARMLS® COPYRIGHT 2023.

11109 N 161ST AVE, Surprise

* SOLD FOR FULL PRICE * Spotless 3 bedroom & 3 bath home in Greer Ranch features two-tone paint, large den with double doors, great open concept kitchen with silestone quartz counters, breakfast bar & walk-in pantry. Spacious dining area & family room complete this popular open floor, making it great for entertaining. Master bedroom boasts walk-in closet, large master bathroom with a walk-in shower, dual sinks & private toilet room. Large laundry room with upper cabinets leading to oversized 2.5-car garage. Backyard has covered patio & paver stone sitting area. Home sits across from beautiful greenbelt with walking paths.

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

Listing Price: $469,000
MLS #: 6421801
Address: 11109 N 161ST AVE
City: Surprise
State: AZ
ZIP: 85379
Home Size: 2,100
Lot Size: 6,379
Bedrooms: 3
Bathrooms: 3
Garages: 2
Pool: N

17917 W SAN MIGUEL AVE, Litchfield Park

* SOLD FOR 97.6% OF ASKING * Custom built Tuscan home in gated community of Russell Ranch on almost half acre corner lot, with 4 bedrooms (including one with ensuite bathroom), 3.5 bathrooms, 3-car garage & RV gate. So many upgrades to appreciate: soaring ceilings featuring rough-sawn rafters, travertine flooring, knotty alder doors & cabinets, granite counters, huge stone fireplace, wet bar, stainless steel Jenn-Air appliances, upgraded lighting, surround sound & more! Large master bathroom has walk-in travertine shower with dual heads & jetted tub. Mature backyard made for entertaining with large pebbletec pool & spa, waterfall feature, two fire pits, expanded covered patio & big grass play area. Entire exterior has just been professionally repainted!

Litchfield Park home for sale, marketed by Litchfield Park Realtor Andrew Robb.

Listing Price: $1,050,000
MLS #: 6407453
Address: 17917 W SAN MIGUEL AVE
City: Litchfield Park
State: AZ
ZIP: 85340
Home Size: 3,711
Lot Size: 18,618
Bedrooms: 4
Bathrooms: 3.5
Garages: 3
Pool: Y

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
Andrew Robb - RE/MAX Fine Properties, 21020 N Pima Rd, Scottsdale AZ 85255