Dennis Carr

DRE: SA662614000


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Arizona Homes: The Phoenix Metro Market Report 6-7-2024

Posted On: June 7th, 2024 6:13PM

 


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Concise Daily Market Snapshot

The table below provides a concise statistical summary of today's residential resale market in the Phoenix Metropolitan Area. 
The figures shown are for the entire Arizona Regional area as defined by ARMLS. All residential resale transactions recorded by ARMLS are included.
 
All dwelling types are included. For-sale-by-owner, auctions, and other non-MLS transactions are not included. Land, commercial units, and multiple dwelling units are also excluded.

 

Jun 5 The affidavits of value have been counted and analyzed for Maricopa County's April filings and here is what we found:

  • There were 7,858 closed transactions, down 5% from 8,255 in May 2023 but up 8% from April.
  • There were 1,572 closed new homes, down 12% from 1,788 in May 2023 but up 10% from April.
  • There were 6,286 closed re-sale transactions, down 3% from 6,467 in May 2023 but up 8% from April.
  • The overall median sales price in May was $475,000, up 2.5% from May 2023 but down 0.3% from April.
  • The re-sale median sales price was $460,000, up 2.7% from May 2023 but down 1.1% from April.
  • The new home median sales price was $520,634, up 2.7% from May 2023 and up 1.0% from April.

Closing counts look good when compared with last month, but are down compared with a year ago. New homes closings were noticeably weaker, falling 12% compared to a year ago, suggesting demand for new homes may be losing steam after a very good run.

New home market share peaked at almost 28% in December 2023 and has been falling back towards more normal levels. It stood at 20% in May.

Prices were slightly weaker in May than they had been in April, back down to the level of March. We see an annual gain in the median of around 2.5%, which is lower than the overall inflation rate.

These numbers are for single family and townhouse / condo homes.

 

The Sweet Spot for Buying Luxury Homes

If you’ve been looking for a home at the high end of your market, but haven’t found the right one, you may have put your search on hold. But according to recent data, now may be the time to jump back in. Here’s why.

There Are More Luxury Homes To Choose From

What’s considered the top-end of the market, or a luxury home, will always vary by location. But generally speaking, they’re homes that are valued in the top 5% of any given market. According to a recent report from the Institute for Luxury Home Marketing, the selection of luxury homes is increasing (see graph below):

As the graph shows, there are considerably more single-family luxury homes available now than there were a year ago. In fact, there are even more than there were just a month ago. This means you should have a wider variety of top-of-the-line homes to choose from, each with unique features and styles.

Whether you were searching for the latest design elements, like modern kitchens with chef-grade appliances, a breathtaking view, or integrated smart home technology, more luxury inventory means you should have an easier time finding one that matches your taste and lifestyle.

Rising Luxury Home Prices Can Help You Build Wealth

Another important factor to consider is that luxury home prices are on the rise. According to HousingWire, luxury home prices have increased by 8.7% over the past year. That’s why:

“People with the means to buy high-end homes are jumping in now because they feel confident prices will continue to rise . . . They’re ready to buy with more optimism and less apprehension.

This means buying before prices climb higher – and while more inventory is on the market – may be your sweet spot. Because home prices are rising, owning a home could help you build more generational wealth over time. On the other hand, if you wait to buy, you might end up paying more for the same home later on as luxury prices continue to rise.

Bottom Line

With growing inventory and rising prices, you have a greater selection of luxury homes to choose from and an opportunity in front of you. Want to see the higher-end homes that are available in our area? Connect with a local real estate agent today.

 
 
As of 6/6/2024
30-year fixed: 7.03% 
15-year fixed: 6.55%
30-Year Mortgage Rates decreased noticeable since this time last week.

“Some lenders advertise much lower rates than others. Other lenders can be "out of the market" at times. Our index attempts to capture the most prevalently quoted conventional conforming 30-year fixed rate for a loan scenario with at least 20% down and no major loan level price adjustments.”

Mortgage News Daily website ~

 
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Dennis Carr - Realtor, GRI
Licensed in AZ and CA

480.825.2870
 
Are You Thinking of Selling or Buying?

Thank you for reading the Arizona Metro Market Report. I hope this newsletter provides value and helps you stay informed about local real estate trends.

The Phoenix metro real estate market continues to be one of the most attractive locations within the United States. An exodus from Seattle, Los Angeles, San Francisco, and cold climates to the Northeast has helped fuel the growth. In spite of historically high prices in Arizona, the cost of housing continues to be a bargain for many out-of-state buyers.

If you are considering buying or selling in Arizona and would like to discuss this possibility without being pressured, contact me so I can learn more about your timeline and real estate goals. Together, we will drill down and identify what's most important to you. Planning ahead and implementing a strategy for success is the most engaging and effective way to create the outcome you deserve.

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