Half-Yearly Phoenix Real Estate Market Update (Jan-July 23)

As we reach the halfway point of 2023, it's time to take a closer look at the Phoenix real estate market and see how it's performing. This market update is an essential resource for buyers and sellers in the area. Let's dive into the critical metrics that determine the state of the Phoenix real estate market.

Buyers

The Phoenix real estate market is currently favoring sellers, with a low inventory of available homes for sale. Buyers are finding it challenging to find homes that fit their needs and budget, resulting in multiple offers on the few properties available. With the average days on market decreasing, buyers need to act fast when they find a home they like.

However, there is good news for buyers as projections suggest that the market may shift to a more balanced state in the second half of the year. The inventory is expected to increase, providing buyers with more options to choose from. Additionally, the Federal Reserve's decision to hold interest rates steady will keep mortgage rates low, making it more affordable for buyers to purchase homes.

Sellers

For sellers, it's an excellent time to list their homes as the Phoenix real estate market continues to experience strong demand. The median sales price for homes in Phoenix rose to $438,000 in the first half of 2023, reflecting a 10.07% increase compared to the same period last year. This increase in home prices shows that sellers can expect to receive top dollar for their properties.

The low inventory of homes for sale is also beneficial for sellers as it leads to more competition among buyers, resulting in multiple offers and the potential for bidding wars. However, sellers need to be aware that the market may shift to a more balanced state in the second half of the year, resulting in less competition and potentially lower sale prices.

Market Update

The Phoenix real estate market is experiencing a shortage of homes for sale, with inventory down 20.8% compared to the previous year. The average days on market for homes in Phoenix is 41 days, a decrease of 12.8% compared to the same period last year. This decrease in days on market illustrates the high demand for homes in Phoenix and the speed at which homes are being sold.

Projections for H2 2023

The Phoenix real estate market is expected to remain strong in the second half of 2023, with projections suggesting that inventory will increase, providing buyers with more options. The market is expected to shift to a more balanced state, resulting in less competition among buyers.

The median sales price is projected to continue to rise, albeit at a slower pace than in the first half of the year. The low-interest rates are expected to remain steady, making it more affordable for buyers to purchase homes, leading to a more balanced market.

In conclusion, the Phoenix real estate market is experiencing a strong demand for homes, resulting in an increase in home prices and a decrease in days on market. Buyers need to act fast to secure their dream homes, and sellers can expect to receive top dollar for their properties. Keep an eye on the market, and consult with your real estate agent to help you navigate this dynamic market. If you have any questions, or would like to discuss your options for buying or selling, please do not hesitate to reach out! 

-Allison Ikeler