Phoenix Valley in Seller’s Market
Favorable Market Conditions
Currently, the Phoenix Valley is in a seller’s market. Available inventory is decreasing, while closings and pending sales are increasing. Additionally, the recent bank failures will tighten commercial lending guidelines, which will put a squeeze on the smaller, independent builders for the near term, and may be an opportunity for the publicly traded builders to increase market share.
The current inventory of single family detached properties in MLS (which includes Maricopa and Northern Pinal Counties) is 9,751, a decrease of 1,458 listings from the previous month. Total inventory, including all property types is 12,507 which is a decrease of 1,784 listings. Valley wide, we now have 60 days of inventory, which indicates the Phoenix Valley is in a seller’s market, and 7 days less inventory below last month.
Closings and Pending Sales
Valley wide closings for last month were 7,376 which includes all dwelling types and represents an increase of 745 closings from the previous month. On the other hand, valley wide pending sales are 6,585 which is an increase of 523 pending properties from the previous month. This does not include the 3,808 additional properties that are under contract with contingencies (properties that have escrow opened, but are not yet through the inspection and appraisal process). We keep an eye on these figures because they are of course a leading indicator for what we can expect to see in closed transactions for the coming month; however, all figures continue to show that the Phoenix Valley is in a Seller’s Market.
Phoenix Valley Market Snapshot
Central Phoenix – Active listing inventory is 763 homes, which is a decrease of 177 listings from the previous month.
Northeast Valley – Active listing inventory is 1,662 homes, a decrease of 196 listings from the previous month.
Southeast Valley – Active listing inventory is 1,820 homes, a decrease of 349 listings from the previous month.
West Valley – Active listing inventory is 2,769 homes, a decrease of 462 units from the previous month.
Scottsdale over $1,000,000 – Active listing inventory is 781 homes, a decrease of 39 units from the previous month.
Paradise Valley – Active listing inventory has decreased slightly to 173 homes, a decrease of 32 units from the previous month.
If you have any questions about the current real estate market, specifically in Arizona, and how this can affect selling or buying your next home, give us a call today and we will be happy to answer any questions and help you build a plan that fits your needs. Contact us today at 480-759-1576, or visit us at Cusickgroupre.com. We look forward to talking to you!
