What do the latest numbers say about our Phoenix market?

At this point in October, properties across the Phoenix metro area are averaging $156 per square foot, which is a 1% increase from last month. The number of pending sales, or homes we refer to as “under contract,” have also increased by almost 2% in that same time span. About 95% of that activity comes from regular sellers, and the other 5% is represented by distressed sales, which includes foreclosures and short sales.

It looks like the third quarter slump is behind us, and we should see the same level of appreciation we have been seeing over the next couple months. However, the number of pending sales is low, and we’ve only seen it this low a couple of times in the past decade. This tells me that pricing is putting pressure on demand. This is definitely something we’ll continue to watch.

What’s nice is the sales counts are healthy, and we’re seeing slower sales counts across the board. This is a trend that started in the beginning of 2017, and it’s another thing we’ll have to monitor.

The weakest parts of the market are the higher-end price points above $2 million. The low and mid-range price points still have momentum, but there has been a deterioration in supply. That should keep sales numbers strong, especially in the southeast valley.

If you have any more questions about our Phoenix market or you’re thinking of buying or selling a home soon, don’t hesitate to reach out to me. I’d be happy to help you!