After the past couple of crazy years in the Phoenix Real Estate market, we are finally seeing some significant growth in the supply of homes on the market.
The supply of homes is up 45% in the past six weeks!
While this is good news, the increase in mortgage rates has slowed down demand for these homes – they are staying on the market longer. Buyers are taking a step back and waiting to see what interest rates do.
So, how is this impacting sellers? With buyers stepping back, the crazy multiple offer situation we have been seeing, and offers coming in way over asking price, Sellers are having to take steps to sell their property and in a lot of cases this means price reductions.
We have been seeing price reductions in all sectors of the market, from $400,000 homes to luxury homes over $1 million.
This is all indicative of a shift in the market for sellers and buyers. Homes are staying on the market longer for sellers, giving buyers more choices and more negotiating power.
We are still in a very strong sellers market, but we are seeing a shift away from the insanity of the past few years.
Let’s take a look at Ahwatukee: both in homes priced up to $800,000 and also the luxury market.
For homes up to $800,000 in Ahwatukee for the week of May 1:
2020 – 158 active homes on the market
2021 – 50
2022 – 50
In 2022, the market started with 50 homes on the market, dropped to a low of 28 in February, and then back up to 50 by May 1st. A strong upward trend!
For homes over $800,000 in Ahwatukee for the week of May 1:
2020 – 25 active homes on the market
2021 – 10
2022 – 11
In 2022, the luxury market started with nine active homes, increased to a high of 16 in April and dropped to 11 by May 1.
Homes in this sector of the market are cycling off the market very quickly.
So, city-wide for Phoenix, we are seeing signs that the sellers market is not as strong as it has been, and Ahwatukee follows this pattern – except for the luxury market which is still very strong and inventory is low.
Please reach out to me and we can discuss how this shifting market impacts you and your home buying or selling needs.
Bonny Holland can be reached at Bonny@LeadingLuxuryExperts.com or 602-369-1085.