The Greater Phoenix Area

Sellers can take comfort from the decline in supply, down about 6% from a month ago, though still up 38% from this time last year. Much of the decline was due to cancellations and expiries, up 7% and 15% compared with the previous month. Many sellers are taking a time-out, but those that remain have the advantage of less competition.

Unfortunately, there is little comfort in the demand numbers. Closed sales were slightly down in July 2024 and dropped 7.3% from June. Under contract counts managed to beat August 1, 2024, by 1.1% but are down 4.3% from a month ago.

Pricing is now in a firm downward trend now as the top end of the market is quiet for the summer. The average $/SF for July dropped almost 3% compared with June, and the monthly median fell another 1.8%.

August looks likely to give us more of the same. We are expecting supply to decline further as more sellers withdraw, though this pattern is likely to end during September. We usually get a second wind for new listings as we move into Autumn, especially for the luxury and 55+ sectors.

Demand is stuck in first gear, but those buyers who are active are being treated with the utmost respect. This is in stark contrast to 2021-2022, when most attractive listings received multiple offers within days and buyers had to work hard to even get noticed.

Pricing remains at around the same level as three years ago, at least outside the luxury sector.