Tempe Homes

An In-Depth Look at the Tempe Homes Market

The Tempe single-family home market currently showcases a multifaceted view of trends affecting buyers and sellers.

• Active Listings: As the number of active listings climbed to 331 over the past month from 235 just three months ago, it illustrates an increase in options for buyers and a potentially more competitive landscape for sellers. This metric suggests a market correction as more homes become available, aligning with seasonal trends as we enter the spring market.
• Sold Prices: The trend in sold prices tells a different story, as the average sold price has dipped to $574,285, down from $602,202 three months ago and $597,339 six months ago. This decrease may indicate that sellers are adjusting their expectations and pricing in response to the growing inventory, providing opportunities for buyers negotiating their offers.
• Days on Market (DOM): The average DOM for sold listings has risen to 34 days, which is a notable increase from 46 days three months ago. This rise suggests that homes are taking longer to sell, reflecting the increased competition among listings and the likelihood that buyers are more selective.
• Months of Inventory: Currently, the months of inventory stands at 4.6, up from 3.5 three months ago, indicating a shift toward a more balanced market where supply is beginning to catch up with demand. This month's reading is particularly telling; it suggests buyers might have better negotiating power as seller listings increase while sold prices trend downwards.
• In summary, as we look toward the coming months, the increase in inventory may mean that buyers have more choices at their disposal, but they should also be mindful of pricing shifts and how these could influence their purchasing strategy. For sellers, it may be wise to consider competitive pricing and swift decisions to stand out in a market with rising options for buyers.