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Greater Phoenix Resale Housing Inventory Update – Nov. 2023

Inventory Rising

Last month, we posted a TON of content. It seems like every single day, there's something to report. Today on LUXE BLOG, we begin November 2023 with an update on rising inventory in Greater Phoenix. And while far below 2005, Greater Phoenix's inventory has increased at its second fastest pace in history. 

Inventory & Listing Counts

  • Active listings have increased by 35% since July
  • Comparison: In 2005, listings surged by about 80% in a similar time frame
  • The pace is the fastest observed since the notable 2005 increase

The significant uptick in inventory suggests a dynamic shift in the market. As we all know, rates are high. And they're having an effect.

Also Read: Could A Balanced Local Market Be Coming In The Near Future?

A bunch of houses rising into the sky.

Greater Phoenix Housing Inventory Has Been Rising

Demand Dynamics

Looking deeper into market analytics, a conspicuous drop in demand appears to be at play, affecting the market’s overall vitality.

  • Low demand against the backdrop of rising listings
  • Seasonal slowdown expected due to upcoming holidays
  • Mortgage rates have climbed, hitting the 8% mark

The lower demand, paired with increased mortgage rates, is impacting the purchasing power and choices of potential home buyers.

Mortgage Rate Movements

Mortgage rates undeniably hold immense sway over the market's direction, and their recent fluctuations have been quite telling.

  • Recent rates nearly touched 8%
  • Buyers now face higher monthly payments compared to previous years
  • A fluid situation with rates, potentially moving based on economic news

The rate shifts create an atmosphere of uncertainty, emphasizing the need for buyers and investors to stay attuned to the market.

The Cromford Market Index

To grasp the market's trajectory better, the Cromford Market Index offers essential insights that paint a clearer picture of the ongoing trends.

  • Supply is about 42% below normal
  • Demand stands approximately 29% below normal
  • A trend towards a balanced market is apparent

The index illustrates a market in motion, where various cities within the Greater Phoenix area are experiencing different shifts, contributing to the rich tapestry of the region's real estate saga.

Also Read: Back To The Future Four – Is 2023 A Repeat Of The 1980s Era?

A homeseller and a homebuyer have a standoff.

The Local Market Is Headed Towards Being Balanced

City-By-City Breakdown

Analyzing the market on a city-by-city basis reveals nuanced changes that contribute to the broader picture of the Greater Phoenix area.

  • Different cities showing variable shifts towards buyer’s market
  • Certain cities moving faster towards a buyer's market
  • Every city displaying unique market movements, reflecting individualized trends
  • Cave Creek - 28% move towards a buyer’s market
  • Buckeye - 24% move towards a buyer’s market
  • Chandler - 19% move towards a buyer’s market
  • Mesa - 19% move towards a buyer’s market

This granular view enables a more refined understanding, allowing for strategies to be tailored to each city’s specific market.

Our Thoughts

The Arizona real estate market is multifaceted. Various elements like inventory, demand, mortgage rates, and specific city trends dictate its motion. Here on LUXE BLOG we discuss all kinds of content. And as a boutique real estate brokerage, we help our clients achieve opportunities. If you enjoyed this latest info, we welcome you back! Thanks for reading. 

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