Greater Phoenix
Real Estate

An In-Depth Look at Greater Phoenix Condos

The condo/townhome sector in Greater Phoenix, as of March 17, 2025, manifests a complex interplay of supply and demand metrics that impact market dynamics.

• Over the past month, the inventory level has surged to 4,958 active listings, representing a noteworthy increase from 3,579 three months ago. This growing competition among listings provides buyers with a wider selection and negotiable opportunities. In addition, the current months of inventory is recorded at 6.6, leading towards a traditionally balanced market where neither buyers nor sellers hold overwhelming leverage.

• On the other hand, the average DOM for active listings has extended to 84 days, compared to 108 days three months ago, reflecting a slight decrease in sales pace over this period. While this might suggest that listings are taking longer to sell, it's worth noting that this is a more common trend in fluctuating markets, where the higher number of active listings dilutes the urgency from buyers.

• The average sold price for properties has risen to $460,047, up from $425,278, illustrating a rise in prices driven by sustained demand amidst growing inventory. This increase in sold prices indicates that buyers are still willing to pay a premium for desirable properties, despite the increased number of options available. Importantly, the sold price to original list price ratio is at 94%, implying that while homes are often selling below asking price, closing deals remain relatively strong.

• Further analysis of what this means for prospective buyers indicates potential opportunities to negotiate effectively, particularly as more homes are listed and DOM increases. Sellers, on the other hand, need to be aware of this trend and potentially adjust pricing strategies to stay competitive in the dynamic market landscape.

As a result, whether you're considering buying or selling, understanding these shifting dynamics will be crucial to navigating the current Greater Phoenix condo/townhome market effectively.

An In-Depth Look at Greater Phoenix Land

Examining more in-depth trends, the land market in Greater Phoenix reflects both upward pressure on inventory levels and consistent pricing patterns, which may suggest changes in buyer behavior and market balance.

• The months of inventory currently sits at 16.3, an increase from 17.2 months three months ago and notably higher than 12.0 months six months ago. This extended availability indicates that the market is experiencing slower transactions, which follows the historical norms of buyer saturation during the fall months.
• Additionally, the average Days on Market (DOM) for active listings has extended to 286 days, up from 317 days three months prior. This extension signals that homes are remaining on the market for longer periods, giving buyers leverage in their negotiations.
• Highlighting the price activity, the average sold price across the last 30 days was $318,610, indicating a slight uptick compared to $295,558 six months ago. This price stability alongside rising inventory suggests that while buyers are facing more options, they are also observing modest increases in what they are willing to pay for land.
• The average price per square foot remains consistent at $8 for active listings and reflects a steady market sentiment in this segment.
• Buyer strategies may need recalibration; with consistent prices and increasing inventory, negotiating on price points becomes more viable, whereas sellers might want to consider pricing competitively to attract buyers in a more prolonged market trend. Understanding these dynamics will be key in navigating the current land investment landscape in the Greater Phoenix area.

An In-Depth Look at Greater Phoenix Multifamily Dwellings

The current landscape of the multifamily market in Greater Phoenix gives us a blend of opportunities and challenges. Over the past month, the number of active listings has climbed to 336, up from 243 three months ago. This increase is pivotal as it reflects a more saturated market, subsequently leading to prospective buyers having more options to choose from than just a few months back.

The average DOM for active listings is currently 118 days, which indicates a marginal decline from prior months. However, this figure needs to be contextualized against a backdrop of increasing inventories. Such a trend suggests that while properties are becoming available, the time taken for listings to sell isn't decreasing significantly, hinting at potential buyer hesitance or adjustments in pricing strategies.

In regard to sold prices, there’s been a notable uptick to an average of $652,454, which is a slight increase from $636,333 just three months ago. This upward momentum in prices could point to rejuvenated buyer confidence amid rising inventory, emphasizing that successful sales still reflect robust demand in certain neighborhoods.

Interestingly, the months of inventory figure is currently at 9.8, indicating an extended market presence where listings sit available for a longer period. This metric marks a significant rise in supply compared to 6.9 months of inventory observed three months ago, showcasing a shift towards conditions favorable to buyers. Such outsized inventory highlights an opportunity for buyers to negotiate on price given that inventory is flowulating.

The interplay between these trends forms a complex picture. The increase in inventory alongside adequate demand maintains a balanced market, yet sellers may need to recalibrate expectations to meet evolving buyer criteria. The market's dynamics suggest that even with rising prices, buyer adaptability to inventory choice could drive negotiation strength. Moving forward, buyers may want to consider targeting properties with longer DOMs, as these could present further negotiating advantages. Conversely, sellers may benefit from evaluating their pricing strategies to adapt to an increasingly competitive environment bolstered by new listings.