By Mike Bodeen · 20 May 2024
Stuff’s Been Happening
For 6 or more weeks, we’ve been looking at and (rightly) devoting most of this Snapshot space to the industry altering lawsuit known as Sitzer-Burnett; et al, vs the National Association of Realtors (NAR), a case won by Sitzer, and a shot heard round the world, especially in the U.S..
Today, we’re taking a breath and pausing from Sitzer to bring us up-to-date on what’s been happening with our Phoenix-Metro residential real estate market. And stuff’s a happenin!
BTW, for those who for the past three years have bought into the podcast world’s fake news reporting that the U.S. residential real estate market’s values are heading for a crash, may want to re-direct your time investment elsewhere.
First of all, the numbers please:
The following stats represent Maricopa County’s affidavits of value (all reported sales) for the month of April 2024. We’ve added (3) line items for current listing activity from the Arizona Regional MLS:
There were 7,248 total closed transactions, up 6% from 6,840 in April 2023 and up 5% from March. Advantage Sellers
The overall median sales price in April was $476,545, up 4.7% from April 2023 and up 0.3% from March. Advantage Sellers
There were 5,818 closed re-sale transactions, up 7% from 5,517 in April 2023 and up 9% from March. Advantage Sellers
The re-sale median sales price was $465,000, up 6.9% from April 2023 and up 1.3% from March. Advantage Sellers
The new home median sales price was $515,279, up 0.4% from April 2023 and also up 0.4% from March. Advantage Buyers
There were 1,430 closed new homes, up less than 1% from 1,423 in April 2023 and down 8% from March. Advantage Buyers
As of 05.16.2024 there were 17,541 residential listings for sale, up 2% from last month and up 45% from one year ago. Advantage Buyers
As of 05.16.2024 there were 9,182 residential listings under Contract, down 4% from last month and 9% from one year ago. Advantage Buyers
Current 30 Year Mortgage Rate 7.00% compared with 6.5% one year ago in 2023, 5.4% two years ago in 2022, and 2.94% 3 years ago in 2022. Advantage Neither
April’s Monthly Average Lease Price per Square Foot(PSF) is $1.37 vs May of 2023 of $1.38 PSF. Since June of 2022, rents have stabilized at $1.35 PSF. Advantage Renters
Though the aforementioned numbers may seem to equally benefit buyers and sellers, the reality is that the lack of affordability (price and mortgage rate increases) have continued to deal cruelly to the buyer, preventing most from entering home ownership. The seller who is really wanting to move has not been dealt kindly with either if they’re needing to get a replacement mortgage near 7%. Their saving grace is that most of them already own their home outright or have an affordable sub 3.5% mortgage.
What sadly amazes me is that even though there’s 45% more homes on the market since last May, and fewer homes under contract currently (slowing sales) yet home prices continue to increase.
BTW, for those who for the past three years have bought into the podcast world’s fake news reporting that the U.S. residential real estate market’s values are heading for a crash, may want to re-direct your time investment elsewhere.
The only direction this market seems to be heading is north.
Mike Bodeen