May 2024 Arizona Market Updates You Need To Know

By Arizona Home Group

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If you plan on buying or selling a home in Arizona, this comprehensive market report from the Arizona Home Group has all the information that you need to help you achieve your goals in the timeline that you want and at the price that you want. Remember, the right information will help you make the right decisions. Here are eight market insights and predictions you need to know:

1. Low inventory. Due to low inventory, Spring 2024 has been a bit slow. We also observed a decrease in the number of pending units. This means that the inventory remains flat. Compared to last year, the number of pending units at this time decreased by 100.

2. Increased average days on market. There has been an increase in average days on the market for listings, with properties staying on the market for around 65 days before being sold, which is longer compared with the previous years’ numbers.

3. Steep decrease in closed sales. By the end of 2024, we are predicting approximately 1,000 fewer closings than in previous years, even though the fourth quarter of last year was also quite slow. While there is activity in the market, it’s not moving at the levels we want.

4. Good time to sell. Despite the slower market activity, it’s still a good time to sell your home, and we at Arizona Home Group can help you achieve that. You will be able to sell your home, but it’s likely going to take more time compared to the previous year.

5. Prices are increasing. Despite the flat inventory levels and a decrease in pending sales, interestingly, home prices still continue to rise. The average dollar per square foot is observed to increase every year, and the median price is up again. Given our current market conditions right now, this increase in median price over the last month is quite surprising.

6. Best time to buy. For buyers who are waiting for interest rates to go down before buying, you have to know that waiting may actually end up costing you more money since prices are steadily increasing. Instead of waiting for rates to lower, what you can do instead is lock in today’s home value and refinance later. This means that you can influence your home’s interest rates by refinancing, but you can’t change the price you bought it for. Since market activity is quite slow, sellers are more open to negotiating and are giving incentives to help offset your interest rates.

7. Lower rates means a more competitive market. If rates do go down, the competition among buyers waiting for the same thing will increase. Increased competition means more offers. When listings get more offers, prices will increase, and there will be bidding wars.

8. Prices may remain flat or continue to increase. Being a destination city, Phoenix continues to attract people, which leads prices to increase despite sluggish market conditions. Since inventory levels remain low, this means that home prices may remain flat or continue to increase.

So, if you have plans to buy or sell a home, we will be more than happy to walk you through what the process will be like in today’s market conditions. If you’re selling, we can give you a free evaluation either online or in person. But overall, buying or selling a home takes a lot of time, energy, effort, and extensive knowledge of the market. Having a dedicated team of real estate professionals like us at the Arizona Home Group will make your homebuying or home-selling experience feel like a dream. Call us—we can make it happen for you.