You are currently viewing July Market update

July Market update

July Market tid-bits:

  • The market is entering a period of recalibration with rising interest rates and the impact on affordability:
    • The percentage of active listings with price drops reached 44% in June, the highest in over three years.
    • Amid a cooling housing market, median sale prices in the Valley are dropping by 5% month over month.
    • The sale price to list price ratio also is declining, as of July 11, it was 99.3%, up from 101.8% in June 2021.
    • As of July 11, the median sales price dropped to $457,500, down from$480,000 in May, according to The Cromford Report.
    • As of July 19, there were 16,485 active listings, up from 6,732 active listings a year ago.
    • Snapshots at the bottom of the page paints the picture.  Number of properties, days on market and months of supply up while sales and homes under contract are down. 
  • On the new home side, base prices are holding steady with isolated instances of builders lowering prices to be more aligned with demand.
  • When you factor in today’s interest rates, elevated home prices and the ratio of monthly payment to income it is now the highest in recent history. This impacts the ability to afford or qualify for financing.
  • With the homebuyer pool thinning, those who have the means to buy at today’s prices are starting to benefit from a more balanced market, with more homes to choose from, more time to consider their options and a lower chance of a bidding war.
  • To put it in perspective, prices grew so much earlier this year that if home prices fell 10% between now and the end of the year, prices would be in line with where they were at heading into 2022.
  • Cromford is reporting that the iBuyer OfferPad is now sitting on 6.7 months of supply, and with the glut of supply it is time for the iBuyer to become the iSeller.
  • Many markets in the greater Phoenix metro area are moving toward “balance” with ideally one buyer for one home.  Not so in Fountain Hills still showing 2.4 buyers for each home on the market, highest ratio in the Valley.

Data provided by the Phoenix Business Journal and the Cromford Report
August 1 market snapshot The Verdes since last month:
Active listings: 10 up from 7
Under contract: 6 up from 4
Sold: 2 down from 9 
Days on market: 30 up from 16
Months of Supply: 1.06 months up from 0.35

August 1 market snapshot Fountain Hills since last month:
Active listings: 164 up from 136
Under contract: 52 down from 75
Sold: 51 down from 73
Days on market: 33 up from 27
Months of Supply: 2.26 months up from 1.28.

Robin Walton

Verdes Lifestyle Team HomeSmart Lifestyles 12625 N Saguaro Blvd. #116 Fountain Hills, AZ 85268

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.