Arizona Housing Market Analysis: September 2024
The Arizona housing market in September 2024 presents a complex landscape with varied trends across different metrics. The Median Sales Price for homes in the state stands at $442,800, reflecting a modest year-over-year increase of 0.3%. This slight rise indicates a relatively stable pricing environment, despite broader economic fluctuations.
In contrast, the Median List Price has seen a more significant increase, reaching $479,400, up by 3.0% compared to the previous year. This suggests that sellers are optimistic about the market's potential, possibly driven by increased demand or perceived value in the housing stock.
The median Price Per Square Foot remains unchanged at $255, indicating stability in this metric. However, the Median List Price per square foot has risen by 4.5% to $272, further highlighting the upward pressure on listing prices.
Sales activity shows a slight decline, with 7,273 Homes Sold, marking a 0.9% decrease year-over-year. Despite this, Pending Sales have surged by 12.4%, totaling 9,074, suggesting a potential rebound in closed transactions in the coming months.
New Listings have increased by 6.4%, reaching 10,470, while inventory has expanded significantly by 31.6% to 28,690 homes. This substantial growth in inventory, coupled with a 90.0% increase in Months of Supply to 3.9 months, indicates a shift towards a more balanced market, potentially easing the competitive pressures seen in previous periods.
The Median Days on Market have increased by 15.0% to 57 days, reflecting a slower pace in sales transactions. This could be attributed to the growing inventory and the need for buyers to carefully evaluate their options.
The average sale to list ratio has slightly decreased by 0.3% to 98.2%, suggesting that buyers are negotiating more effectively. The percentage of Homes Sold above list price has dropped by 5.1% to 15.1%, further indicating a cooling in competitive bidding scenarios.
Price Drops have remained relatively stable, with a minor increase of 0.3%, affecting 29.0% of listings. Meanwhile, the percentage of homes going off the market within two weeks has decreased by 10.5% to 25.4%, suggesting a more deliberate pace in buyer decision-making.
Overall, the Arizona housing market in September 2024 exhibits a mix of stability and change. While prices show moderate growth, increased inventory and a slower sales pace suggest a shift towards a more balanced market environment. Buyers and sellers alike may need to adjust their strategies to navigate these evolving conditions effectively.
