• Thu. Feb 22nd, 2024

    Phoenix Real Estate Market Shows Resilience Despite Challenges in 2023

    BySharna Bass

    Jan 28, 2024
    Phoenix Real Estate Market Shows Resilience Despite Challenges in 2023

    The residential real estate market in Greater Phoenix faced numerous obstacles in 2023, including a shortage of listings, record-high mortgage rates, and hesitant sellers. These challenges made it the toughest year for the market since 2009, according to Phoenix REALTORS. However, amidst these difficulties, real estate agents remain optimistic about the prospects of 2024, as they see signs of improvement and new opportunities on the horizon.

    Despite the shortage of listings, the demand for quality housing remains high in Phoenix. The American Community Survey from the Census Bureau revealed that Phoenix virtually tied for first place, with Maricopa County ranking as the top growing area in the United States. The influx of new families relocating to the Valley for career changes, business opportunities, and a better quality of life, primarily from California and the central Midwest, continues to drive the demand for homes.

    Sheryl Bowden, the new president of Phoenix REALTORS, believes that the market will turn around in 2024 due to several factors. The population growth, dropping mortgage rates, and increasing housing stock have created optimism among real estate professionals. Median sales prices in 2023 only decreased by 4.3% compared to the previous year, while the monthly inventory supply increased by 3.7%.

    Although new listings dropped by 23.8% year-over-year, the decreased supply and increased demand are expected to lead to faster turnover in the market. In 2023, the number of days a home was on the market decreased to 65, down from nearly 70 four months earlier. Workforce-priced housing, homes selling under $300,000, sold the quickest with an average of 57 days on the market.

    Phoenix REALTORS’ data also revealed that buyers in 2023 obtained homes at 1.7% under the listed price, compared to buyers in 2022 who received the asking price. The most robust market was seen in homes priced between $300,000 and $400,000, which saw a 5.1% increase in sales compared to the previous year.

    Looking into the future, Bowden sees significant opportunities for improvement in 2024. With declining interest rates and the Federal Reserve Bank’s intention to avoid increases, sellers are expected to become more motivated to sell their homes. Additionally, several major employers will be setting up shop in late 2024 and early 2025, bringing in more new families to the Valley and creating a further need for housing.

    In conclusion, while the Phoenix residential real estate market faced significant challenges in 2023, there is a sense of optimism among real estate agents for the year ahead. With improving market conditions and new opportunities on the horizon, 2024 holds the promise of a stronger real estate market in Greater Phoenix.

    FAQ Section:

    1. What were the main obstacles faced by the residential real estate market in Greater Phoenix in 2023?
    The main obstacles faced by the residential real estate market in Greater Phoenix in 2023 were a shortage of listings, record-high mortgage rates, and hesitant sellers.

    2. Was 2023 considered a tough year for the market in Greater Phoenix?
    Yes, according to Phoenix REALTORS, 2023 was considered the toughest year for the market in Greater Phoenix since 2009.

    3. What are the signs of improvement and new opportunities in the real estate market in 2024?
    Real estate agents in Greater Phoenix see signs of improvement and new opportunities in 2024 due to factors such as population growth, dropping mortgage rates, and increasing housing stock.

    4. What is the demand for quality housing like in Phoenix?
    Despite the shortage of listings, the demand for quality housing remains high in Phoenix. The influx of new families relocating to the area for career changes, business opportunities, and a better quality of life is driving the demand.

    5. How did median sales prices in 2023 compare to the previous year?
    Median sales prices in 2023 only decreased by 4.3% compared to the previous year.

    6. Did the number of days a home was on the market decrease in 2023?
    Yes, the number of days a home was on the market decreased to 65 in 2023, down from nearly 70 four months earlier.

    7. How did buyers in 2023 obtain homes compared to buyers in 2022?
    Buyers in 2023 obtained homes at 1.7% under the listed price, compared to buyers in 2022 who received the asking price.

    8. Which price range saw the most robust market in 2023?
    Homes priced between $300,000 and $400,000 saw a 5.1% increase in sales compared to the previous year, making it the most robust market.

    9. What factors are expected to motivate sellers in 2024?
    With declining interest rates and the Federal Reserve Bank’s intention to avoid increases, sellers are expected to become more motivated to sell their homes in 2024.

    10. What are the expectations for the real estate market in Greater Phoenix in 2024?
    Real estate agents are optimistic about the prospects of 2024, expecting improving market conditions and new opportunities to lead to a stronger real estate market in Greater Phoenix.

    Key Terms/Jargon:

    1. Phoenix REALTORS: Refers to the professional association of real estate agents in the Greater Phoenix area.
    2. Mortgage rates: Refers to the interest rates charged on mortgages or loans for purchasing a home.
    3. Census Bureau: Refers to the United States Census Bureau, the government agency responsible for conducting the national census and collecting data on various topics, including population growth.
    4. Maricopa County: Refers to the county in Arizona, which includes Phoenix and several other cities.
    5. Median sales prices: Refers to the middle price point of all the homes sold in a particular area over a specified period of time.
    6. Inventory supply: Refers to the number of homes available for sale in the market at a given time.
    7. Workforce-priced housing: Refers to housing options that are affordable for individuals or families who are part of the local workforce.
    8. Federal Reserve Bank: Refers to the central banking system of the United States, responsible for implementing monetary policy and regulating banks.

    Related Links:
    Phoenix REALTORS Official Website