Phoenix Real Estate Market Overview: Q1 2024

As we assess the Phoenix real estate market for the first quarter of 2024, a clear downward trend in demand contrasts with a relatively stable housing price environment. Demand has slipped by approximately 5% compared to last year, with daily sales in February and March showing a significant reduction of 15 fewer transactions per day year over year. Compared to the pre-COVID figures of the first quarter of 2020, the current demand is lower by 26.02%.

The sales volume has notably decreased by 31.61% from the bustling first quarter of 2021. However, amidst these downturns, the median sales price paints a brighter picture, marking a 5.65% increase year over year, signifying a stable pricing landscape despite the reduced activity.

Interest rates have seen a minor uptick with the 30-year fixed-rate mortgage (FRM) reported by Freddie Mac averaging 6.88% as of April 11, 2024. This is an increase of .06% from the previous week and .61% from last year.

The period between late March and late April remains critical, historically showing the highest yearly total for accepted contracts. This phase's outcomes usually translate into the closing figures for May and June, hinting at potential shifts in the market's trajectory in the upcoming months.

 

Source: Arizona Region MLS