The price of a home in Phoenix and the overall supply of homes on the market has continued to increase throughout the final quarter of this year, with trends looking upward for 2025, says a new real estate services market analysis.
The largest city in Arizona, and one of the top five largest cities in the country, Phoenix, with just over 1.6 million people, continues to see an immigration largely fed by California expatriates and could be nearing the 1.8 million mark in the next decade.
Those strong numbers, says the report produced by the Laguna Niguel, California-based Norado Real Estate Investments, all point to a continuing vibrant market and a need for more housing in the years to come.
Yet, for all the upward trend figures, the actual number of homes sold in Phoenix this fall declined, from 1,331 in September of 2023 to 1,221 this last September.
This unexpected dip in sales volume, says the report, Phoenix Housing Market: Trends and Forecast, is primarily due to a combination of “rising interest rates, a cooling economy, and a slight increase in the inventory of homes available for sale.”
Despite what can only be described as a temporary sales volume decline, the median sale prices of a home in Phoenix in October stood at $446,000. Nationally, according to statistics compiled by the Federal Reserve, the number was $420,400.
While Phoenix’s sales price increase of 1.4% over last year, says the Norada report, “is considerably lower than what we have witnessed in recent years, it’s a reminder that Phoenix remains an attractive housing market.”
While the actual number of new homes in the Phoenix market has continued to increase, “it’s still not considered a buyer’s market in the traditional sense.” And the intense and even somewhat frantic competition for a home seen in the last decade has eased up, allowing buyers now to “take more time to find the right property without feeling pressured to make the right decision.”
Phoenix’s initial boom occurred in the 1950s with the advent of air conditioning and a population jump from 106,000 at the beginning of that decade to more than 439,000 by its end. Those figures, the Arizona Republic subsequently noted, represented a “steady growth of nearly 1,000 persons per month.”
The most recent figures point to a monthly increase of more than 2,800 people.
November 25, 2020
By Garry Boulard
