As we move through the summer of 2024, the Phoenix metro area’s real estate market is showing signs of change. If you’re a buyer, seller, investor, or renter here’s what you need to know about the current state of the market.

Listings are Taking Longer to Sell

One of the key trends we’re seeing is that homes are experiencing less showings and taking longer to get under contract to close. The Days on Market (DOM) has increased, with the average now at 68 days. This indicates a result of changing buyer behavior.

Some Numbers Are Down (Typically normal for this time of year and an election year)

We’re observing a decline in key market indicators over the past 3 months:

Homes Sold: The number of homes sold has decreased compared to earlier in the year (12% decline)
New Listings: Fewer new listings are coming to the market, which is contributing to the longer time homes are staying unsold (20% decline).
Sold Prices: Both the average and median prices have seen modest declines over recent months (7% decline).

No Need to Worry

Despite these shifts, there’s no need for alarm. The market is adjusting after a period of rapid growth and high demand. It’s important to remember that real estate markets naturally fluctuate, and what we’re seeing now is part of a normal cycle during an election year and economic uncertainty.

Seller Compensation to Buyer agents are the Majority

Even with the current market conditions and recent changes when working with your Realtor, sellers are still offering compensation to agents for most listings.

Months of Supply Is Up

The months of supply in the Phoenix metro area has increased, now sitting at 2.86 months. This rise in inventory levels provides buyers with more options, but it also means sellers might need to be more strategic in pricing and marketing their properties.

The Takeaway

If you’re a buyer, this is a great time to explore your options with less competition. For sellers, pricing your home competitively and being patient is key. Renters have more options to select from and landlords are open to negotiating. Investors are still hunting for deals but most do not have a lot of profit margins. Agents should be prepared to navigate a more balanced market, where negotiations may require more finesse.