Greater Phoenix Multifamily

An In-Depth Look at the Greater Phoenix Multifamily Market

In greater detail, the multifamily market in Greater Phoenix has seen notable shifts in key metrics that reveal insights into current buyer and seller dynamics. The number of active listings has expanded over the past month, reaching 335, which represents a rise from 253 listings three months ago. This uptick suggests an increase in available choices for potential buyers, potentially slowing the pace of sales.

Interestingly, though the average sold price has declined slightly to $731,886 from $763,205 three months prior, it's still above the average price of $680,546 noted six months ago. This modest decrease in sold prices indicates a potential adjustment as more inventory enters the market, allowing buyers a greater range of options and, perhaps, driving negotiations down a bit.

The DOM has increased to 115 days, up from 72 days last quarter. This escalation highlights a trend toward longer selling periods, which may reflect buyer hesitance or a saturated market, with inventory levels rising more than the immediate demand for multifamily units. Such a shift typically leans toward a balanced market rather than one heavily favored by either buyers or sellers.

Months of inventory, currently at 7.7, indicates that it would take about 7.7 months to sell through the existing listings at the current sales pace. This level is on the higher end and indicates that, while the market is not excessively stocked, it exhibits more balance compared with tighter inventory conditions previously experienced in the region.

In summary, these evolving metrics suggest a multifamily market in Greater Phoenix that is moving toward balance, where buyers may enjoy more negotiating power, and sellers might need to adjust their expectations regarding pricing and readiness to engage with interested buyers.