Greater Phoenix Real Estate Stats Are In From September 2024
Market Update
It may be November but we have Greater Phoenix stats from September to share. Below will help you get up to speed. 'The Valley' showed mixed results. While the median purchase price dipped slightly, a year-over-year improvement in sales suggests growing buyer interest, likely influenced by lower mortgage rates compared to last year. Here’s a detailed analysis of the market’s key metrics.
Key Market Metrics
September saw several trends affecting the Greater Phoenix real estate market, from pricing adjustments to changing buyer preferences.
- Median Purchase Price (MPP): The median for single-family homes reached $500,000 in September. This is down from $506,000 in August and slightly lower than last year’s median. Predictions indicate that prices may start rising by February 2025.
- Price Per Square Foot: Averaged $298.20 in September, down $0.86 from August but still $0.60 higher than last September.
- Sales Volume: A total of 3,460 single-family homes sold, a 3% increase over August and 2% above last year.
- Seller Concessions: 55% of September sales included concessions, a small drop from August but an increase over last year. The median concession amount remained stable at $10,000.
- Fixed Mortgage Rate: The average 30-year fixed rate was 6.2%, a slight increase from August’s 6.1%. However, this is down from last September’s 7.2%, potentially driving more buyer activity.
The gradual dip in prices and more manageable mortgage rates make the Greater Phoenix market more appealing for buyers, especially compared to 2023’s higher interest rates.
Also Read: How Election-Year Uncertainty Affects Greater Phoenix Housing
Buyer Financing Trends
Buyer financing methods in September reflect varying preferences for loan types and price ranges.
- Conventional Loans: Most popular, representing 52% of purchases.
- FHA Loans: Used by 17% of buyers, popular among first-time buyers due to low down payment options.
- VA Loans: Accounted for 9%, providing favorable terms for veterans and active-duty service members.
- Cash Purchases: 17% of buyers opted to pay cash, commonly for homes under $300,000 or above $1,500,000.
- Other Loan Types: 5% used alternative loan structures, such as jumbo loans.
The higher cash buyer percentage in lower price ranges could signal increased investor activity. Meanwhile, conventional loans dominate across most segments, underscoring their continued role in financing options.
Market Activity By Price Range
A breakdown of sales activity by price range reveals which segments of the market saw the most action.
- Under $300,000: Limited availability with only 76 sales, highlighting the scarcity of affordable housing.
- $300,000 - $499,999: The most active range, comprising 1,151 sales. Many buyers here used FHA loans or cash, seeking affordability with lower monthly payments.
- $500,000 - $699,999: This range had 938 sales, with a mix of conventional and cash buyers.
- $1,000,000 & Above: Represents 416 sales, showing continued demand for luxury properties, with a high percentage of cash purchases.
Most sales occurred in the mid-range segment ($300,000 to $699,999), which continues to be the sweet spot for Greater Phoenix buyers seeking balanced affordability and value.
Inventory & Days On Market
The supply of available homes and how long they stay on the market provides insight into buyer demand and competition levels.
- Months of Supply: Greater Phoenix had 3.2 months of supply, up slightly from August. Homes under $450,000 had less than 2 months of supply, suggesting higher competition for affordable homes.
- Active Listings: Approximately 11,232 active listings in October, with the most inventory in the $500,000 - $699,999 range.
- Average Days On Market (ADOM): Homes stayed on the market for an average of 64 days, up from August’s 63 days. Higher-priced homes tended to have longer selling times.
This slight increase in inventory and days on the market points to a more balanced market. However, properties below $450,000 remain competitive due to limited availability.
Also Read: Here’s Why The Arizona Housing Market Isn’t Crashing In 2024
September 2024 Single-Family Home Sales Data
The following table provides a quick snapshot of September’s home sales and seller concessions:
| Price Range | Total Sales | % With Concessions | Median Concession |
|---|---|---|---|
| Up to $299,999 | 76 | 36% | $5,000 |
| $300,000 - $349,999 | 195 | 63% | $8,500 |
| $350,000 - $399,999 | 519 | 65% | $10,000 |
| $400,000 - $449,999 | 376 | 64% | $9,500 |
| $500,000 - $699,999 | 938 | 52% | $10,000 |
| $1,000,000 & Above | 416 | 24% | $15,000 |
Key Observations:
- Seller concessions are common across most price ranges, particularly in mid-range properties.
- Higher concessions were recorded for homes priced between $350,000 and $699,999, likely to attract buyers amid affordability concerns.
- Luxury homes ($1,000,000+) had fewer concessions, reflecting stronger demand or less price sensitivity in this segment.
Summary
The Greater Phoenix real estate market remains resilient. Lower mortgage rates compared to last year are encouraging more buyers, while seller concessions are helping bridge the affordability gap. The high activity in mid-range prices and the limited inventory for affordable homes highlight the growing need for attainable housing options. The months ahead may see gradual price increases as market conditions shift and demand continues to grow. If you enjoyed this content stay tuned for more!
Also Read: Why The Average 30-Year Fixed Mortgage Rate Jumped To 7%
