If the real estate market feels like it’s slow, that’s because it is:
What is causing the slowdown? Yes, the heat in our seasonal market hits the brakes, but when we view new listings, we see they have fallen for 11 consecutive months on a year-over-year basis, while the total number of homes for sale followed along with falling sales for eight consecutive months. Interest rates have put the brakes on for buyers, and with our seasonal market and heat wave, buyers are not prowling the streets. Lack of inventory is related to the same things that slows down buyers. Why sell a home with a low interest rate to purchase a home with a 7% loan? Why have my home sit on the market with not enough buyers available at this time of year to give the seller a chance to review multiple offers? In 2021-22 sellers were reluctant to sell causing low inventory because they did not want to become a buyer and get their faces blown off in the market if they did not have a soft place to land. Now they are reluctant to sell due to the interest rates.
A new Redfin analysis shows nationwide that about 1% of homes changed hands in the first half of the year, marking the lowest turnover rate in at least a decade. In Maricopa County, the real estate market is slightly more active. According to the Cromford Report, there are 1,163,978 single-family homes. Through May of this year, 21,135 homes changed hands, representing 1.8% of homes in the county. Cromford Report data shows 5.6% of homes changed hands in 2022 in Maricopa County. Sales Volume Year-Over-Year via ARMLS compares the total sales volume for the first six months of 2023 to historical totals, 2023 ranks 19th out of the 21 years ARMLS has been reporting this data. Only 2007 and 2008 reported fewer sales. Sales volume for the first half of 2023 is down 20% year over year. The statistics do not include new construction.
August 1 market snapshot The Verdes since last month:
Active listings: 8 down from 11
Under contract: 6 down from 8
Sold: 5 unchanged
Days on market: 51 up from 39
Months of Supply: 1.17 down from 1.67
August 1 market snapshot Fountain Hills since last month:
Active listings: 103 down from 105
Under contract: 49 down from 61
Sold: 43 down from 58
Days on market: 49 down from 78
Months of Supply: 2.32 unchanged
