In the ever-evolving landscape of the 2024 Metro Phoenix real estate market, staying informed about current trends and predictions is crucial for both buyers and sellers. While national real estate news and statistics provide a broader picture, it’s essential to focus on the specific changes and dynamics of your local market.
According to Tina Tamboer with The Cromford Report, here are the latest statistics as of January 10, 2024, compared to the same time last year:
For Buyers in this Phoenix Real Estate Market
- The Federal Reserve announced their intention to drop the Federal Funds Rate three times in 2024.
- Mortgage rates dropped 1.4% since peaking at 8% in October 2023, resulting in savings for borrowers. On a $400,000 loan this saves $380 per month.
- As a result of rates dropping, December saw a boost in mortgage applications and seller-paid concessions, with 49% of sales involving a concession to the buyer.
- Coolidge and Laveen had the highest percentages of sales with concessions, at 81% and 79%.
- Over 76% of newly constructed home sales noted some form of builder-paid concession.
- In 2024, there could be relief in declining mortgage payments and improved affordability measures.
- Expectations for the housing market include more traditional home buyers entering the market, as opposed to investors.
The Federal Reserve’s plan for the Federal Funds rate in 2024 will be revealed at the end of January.
For Sellers in this 2024 Phoenix Real Estate Market
- Greater Phoenix is continuously improving but still experiencing a weak seller’s market.
- Good condition and pricing from the start are crucial for facilitating offers within a reasonable time frame.
- Open-mindedness towards concessions to the buyer is important.
- New listings in the first week of January are higher than last year but not significantly.
- Inventory is rising moderately but still 37% below normal for this time of year.
- Seller’s markets include: Tolleson, Apache Junction, Fountain Hills, Chandler, Gilbert, Laveen, El Mirage, Anthem, Glendale, Sun Lakes, Phoenix, Scottsdale, Mesa, and Avondale.
- Balanced markets include: Tempe, Litchfield Park, Sun City West, Peoria, Goodyear, Surprise, Paradise Valley, and Arizona City.
- Buyer’s markets include: Cave Creek, Gold Canyon, Queen Creek, Sun City, Casa Grande, Buckeye, and Maricopa.
- Most cities are either gradually improving or holding steady in their market measures.
- Sale price measures in January will reflect December negotiations.
- Lower mortgage rates and seller concessions are expected to sustain sales price measures in the first quarter.
- The second quarter could be exciting if rates continue to decline.
For Buyers and Sellers in Metro Phoenix
But wait, there’s more! We just wanted to give you a friendly heads-up that market conditions can be as unpredictable as the weather. It’s crucial to stay informed about the latest trends and developments to help both buyers and sellers navigate the ever-changing real estate landscape.
If you’re itching to know what’s really going down in the Metro Phoenix real estate market right in your very own neighborhood, don’t hesitate to reach out to us.
Cheers to a prosperous 2024!
Vickie & Dana
Vickie McDermott-Rupp
vickie@downtownphoenixliving.com
602-722-7971
Instagram @vickierupp
Dana Zazueta
dana@northandco.com
602-930-5988
Instagram @danazazueta
