November 2022 Arizona Real Estate Market Summary by Connie Colla

Where did all the buyers go and are they coming back? And what’s happening to home prices? Two important questions buyers, sellers, and even homeowners who aren't selling, are asking.This is the current inventory in the MLS for November 1, 2022 compared with November 1, 2021 for all areas & types:

• Active Listings: right now we have about  20,582 homes on the market versus 7,777 last year - inventory is up 165% - and up 2.5% or about 500 homes just since (20,084) September 30th.
• Under Contract Listings:  Right now we have 6,533 versus 12,834 last year - down 49.14% - and down 11.2% (from 7,358 ) September 30th.
• Monthly Sales: 5,406 versus 8,772 last year - down 38.4% - and down 16.3% from 6,457 on September 30th.

WHY?

Demand has been weak for several months but it got much weaker during October, driven down by the weight of continued hikes in mortgage interest rates. Last year, interest rates were at about 3% and now we are at roughly 7.5 depending on your credit score. Buyers are having to recalculate what they can afford and when they want to buy and they're sitting it out right now while they do the math on that. 

• Monthly Average Sales Price per Sq. Ft. (Oct 1 - Nov 1, 2022): $276.51 versus $261.55 last year - up 5.6%. We are almost unchanged from last month which was at $276.53.
• Monthly Median Sales Price (Oct 1 - Nov 1, 2022): $436,000 versus $415,000 last year - up 5.1% - but we are down 0.7% or about $3000 from last month ($439,000)

GOOD NEWS FOR SELLERS

The downward pressure on prices is currently small and the monthly average price per square foot barely moved between October 1 and November 1. So we aren’t seeing a big home price drop year over year, but we have come down since spring.

Now the reality is there is no reason for home prices to rise. The 5.6% annual home price per sq. ft. appreciation rate is likely to get down to zero sometime around year end, on its current trajectory. 

It’s easy to be worn out right now and have buyer or seller fatigue, but remember that the snowbirds are back and November is one of our biggest sales months. So if you were on the market and sitting there, and came off the market, call me right away. You just need a better plan and quite frankly maybe a better agent to get your home sold. That’s what we do well.

Buyers, your going to find a lot of inventory our there. Don’t wander around out there alone, its a waste of your time and energy.  Call us. It's so much easier. 

And remember, if you’d like to talk through your situation and make a plan to reach your real estate goals, I'm always here! Please don’t hesitate to reach out. Give me a call anytime at (480) 599 5058 or email me at connie@conniecollagroup.com