Phoenix has long been one of the country’s hottest housing markets- with consistent economic growth fueling demand for new properties. This is primarily due to the fact that it’s a great place to live, with relatively affordable rental rates compared to major cities. For those looking to invest in property, the market is also a good option- with prices still lower than many other cities and good potential for returns through tenants.
However, the city’s growing population has not kept pace with demand, leaving inventory low and creating a strong seller’s market. This has led to a high level of competition between buyers, which is keeping costs up. Some worry that rising mortgage rates will eventually slow down the market and lead to a crash.
A look at the latest statistics shows that Phoenix real estate sales have been consistently increasing- although at a slower rate than in previous years. In addition, homes have been staying on the market longer, meaning there are fewer options for prospective buyers. These factors mean that the market is likely to become even more competitive in the coming months.
The number of homes sold in the city increased slightly this month- with a total of 1,490 properties changing hands. This is a significant increase compared to last year, and indicates that the housing market is continuing to improve. However, the number of new Phoenix listings is not keeping up with this demand, with just 2,348 homes entering the market- a significant drop from the previous month and the year before.
Overall, home prices have remained steady in the Phoenix area. In 2024, they are up 0.5% compared to the previous year- with a median price of $440, 000. This has been helped by the aging boomer population who are selling their old homes in order to downsize and move into retirement communities.
New construction is still a relatively small part of the Phoenix real estate market- with just over 3,000 new builds taking place in the city each year. This is less than the national average of around 6,000. The lack of new build inventory is a big reason why the city’s real estate market is so competitive- with builders able to charge more for their properties.
Whether you’re looking for a hip urban vibe in the heart of the city, a quiet oasis in North Mountain Village or somewhere in between- Phoenix has something to offer every type of buyer. Each of the city’s neighborhoods has a unique feel that offers residents an environment to fit their lifestyle.
The city’s bustling downtown core is a hub of activity and culture, while trendy Midtown has an artsy feel. Historic downtown areas like Heritage Square and the Melrose District celebrate the city’s rich history. In addition, up-and-coming areas like Roosevelt Row and Midtown Arts District support the local art scene. And, affluent suburbs like Paradise Valley offer a relaxed and serene setting for those seeking luxury living.