Arizona Housing Market Analysis - August 2024
The Arizona housing market in August 2024 presents a hot landscape, characterized by a blend of declining sales metrics and rising inventory levels. This analysis delves into the key data points to provide a comprehensive overview of the current market conditions.
Median Sales and List Prices
The Median Sales Price in Arizona for August 2024 stands at $440,400, reflecting a slight decrease of 0.6% year-over-year (YoY). Conversely, the Median List Price has risen to $468,300, marking a 2.1% increase YoY. This divergence suggests that while sellers are optimistic about pricing, buyers are negotiating lower final sale prices.
Price Per Square Foot
The median Price Per Square Foot for Homes Sold is $255, showing a modest increase of 0.8% YoY. The Median List Price per square foot is $269, up by 4.4% YoY. These figures indicate a steady appreciation in property values, albeit at a slower pace for actual sales compared to listing prices.
Sales and Inventory
The number of Homes Sold in August 2024 is 7,624, a significant decline of 7.2% YoY. Pending Sales also dropped by 6.1% YoY, totaling 8,883. In contrast, New Listings have increased by 4.5% YoY, reaching 10,157. The inventory has surged by 33.6% YoY to 26,622 homes, indicating a substantial rise in available properties. The Months of Supply have more than doubled, now at 3.5 months, up by 110.0% YoY. This increase in supply suggests a shift towards a more balanced market, potentially favoring buyers.
Market Dynamics
The Median Days on Market for homes in Arizona is 57 days, reflecting a 15.0% increase YoY. This longer duration indicates that homes are taking more time to sell. The average sale to list ratio is 98.1%, a slight decrease of 0.4% YoY, suggesting that homes are selling closer to their listing prices. The percentage of Homes Sold above list price has dropped to 15.0%, down by 5.2% YoY, further indicating a cooling market.
Price Adjustments and Off-Market Trends
Price Drops have slightly increased by 0.5% YoY, now at 30.2%, indicating that sellers are more frequently adjusting their expectations to attract buyers. The percentage of homes going off-market within two weeks has decreased by 12.5% YoY, now at 24.8%, suggesting that fewer homes are selling quickly.
Conclusion
In summary, the Arizona housing market in August 2024 is experiencing a period of adjustment. While Median Sales Prices have slightly decreased, list prices continue to rise, indicating seller optimism. The significant increase in inventory and Months of Supply points to a more balanced market, potentially shifting towards a buyer's market. Sales metrics such as Homes Sold and Pending Sales have declined, while New Listings have increased, further contributing to the growing inventory. Overall, the market dynamics suggest a cooling trend, with longer days on market and fewer homes selling above list price.
