Phoenix Market Update: New Listings, Interest Rates, and More

By Ron Palmer

Ron Palmer has called the Northwest Valley home for over 20 years, cherishing the area—even its intense summers!

What’s happening in the Phoenix real estate market right now? With so much going on, it’s important to stay informed—no matter if you’re looking to buy, sell, or just keep up with the latest trends. Here’s a look at what’s happening this January and what you can expect in the coming months.

What’s happening in Arizona’s market? Listings in Arizona are up this year! January saw the second-highest number of new listings, with a six percent increase week over week and a 55% jump compared to last year. However, February might slow it down a bit, but that’s typical for this time of year. The good news is March is just around the corner, and it’s usually the busiest month for listings.

On the buyer side, more listings are leading to a boost in new contracts, which are up 18% week over week. But compared to last year, new contracts are still 7% lower because high mortgage rates are making things less affordable. Some buyers are opting for new builds, where developers are offering better interest rates, while others are waiting to see if rates will drop even though that’s not expected to happen anytime soon.

Meanwhile, sellers are feeling the pressure. Demand isn’t as strong as it was, and in some areas, home prices are adjusting downward. Homes stay on the market longer, with the average time being just under 60 days. Only 27% of homes are selling in less than 30 days. Pricing and marketing your home correctly are more important than ever to sell quickly in this changing market.

The Phoenix metro area isn’t a one-size-fits-all market, so it’s important to understand what’s happening in specific areas. Here’s a breakdown:

• Peoria: The market in Peoria is balanced, with buyers and sellers on equal footing. Strong job growth, fueled by the now-operational TSMC plant, is driving demand as workers and suppliers move in. With expansion plans ahead, the area’s economic outlook remains strong.
  
• Glendale and Phoenix: These areas remain seller’s markets, with strong demand fueled by job growth. Glendale benefits from the Westgate expansion and new manufacturing, while Phoenix thrives as an economic hub with major employers like Honeywell, Amazon, and Banner Health. Downtown revitalization and new developments are keeping demand high.
  
• Buckeye and Goodyear: These areas are primarily bedroom communities with limited job growth. Commutes to Phoenix can take 45 minutes to over an hour. Because of this, buyers have more negotiating power. This makes it a great time to find affordable homes or secure better rental deals.

For sellers, if you’re in a market like Phoenix or Glendale, you still have an advantage. But you need to make sure you’re pricing your home correctly and marketing it well. For buyers, areas like Buckeye and Goodyear offer great opportunities, and new builds with attractive financing options might be worth considering.

No matter what side of the market you’re on, it’s all about having a clear strategy to navigate these changing dynamics. If you need any help, don’t hesitate to send us an email at customercare@soldwithresults.com.