Arizona Housing Market: November 2024 Analysis
The Arizona housing market in November 2024 presents a complex landscape with varying trends across different metrics. The Median Sales Price for homes stands at $449,100, reflecting a modest year-over-year increase of 1.1%. This suggests a slight upward pressure on home prices, despite broader economic conditions that might influence the market.
Conversely, the Median List Price has decreased by 2.1% year-over-year, now at $462,300. This decline indicates potential adjustments by sellers in response to market dynamics, possibly to attract more buyers in a competitive environment. The median Price Per Square Foot has risen by 1.1% to $254, while the Median List Price per square foot has seen a more significant increase of 3.3%, reaching $267. These figures suggest a nuanced picture where price adjustments are occurring at different levels of the market.
Sales activity has been robust, with 6,827 Homes Sold, marking an impressive 11.1% increase from the previous year. Pending Sales have also surged by 12.0%, totaling 8,036. This uptick in sales activity indicates strong buyer interest and a competitive market environment. However, New Listings have decreased by 2.6% year-over-year, with 8,462 homes entering the market, which may contribute to the heightened competition among buyers.
Inventory levels have increased significantly, up by 22.7% to 30,008 homes. This rise in inventory, coupled with a 40.0% increase in Months of Supply to 4.4 months, suggests that the market is gradually shifting towards a more balanced state, providing buyers with more options. The Median Days on Market have increased by 12.0% to 56 days, indicating that homes are taking slightly longer to sell compared to last year.
The average sale to list ratio remains relatively stable at 98.1%, with a marginal year-over-year increase of 0.1%. However, the percentage of Homes Sold above list price has decreased by 1.6% to 14.9%, reflecting a potential cooling in competitive bidding scenarios. Price Drops have decreased by 2.2%, now at 27.1%, suggesting that sellers may be adjusting their expectations to align with market realities.
Finally, the percentage of homes going off the market within two weeks has declined by 6.3% to 20.9%, indicating a slower pace in the market's turnover rate. This could be attributed to the increased inventory and longer Median Days on Market, providing buyers with more time to make purchasing decisions.
Overall, the Arizona housing market in November 2024 exhibits a mix of growth and stabilization trends. While sales activity remains strong, the increase in inventory and longer days on market suggest a shift towards a more balanced market, offering opportunities for both buyers and sellers to navigate the evolving landscape.
