Closed sales climbed nearly 7% in July compared to the same month in 2023, according to the most recent data from Phoenix REALTORS. The number of Metro Phoenix residential real estate closed deals topped 5,000, higher than last year and 2022.
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“With more listings coming onto the market and increased buyer selections, July showed promise for a normally slow summer month,” said Sheryl Bowden, Phoenix REALTORS board president. “Prices are stabilizing, with just a 1.7% increase over last year.”
The Greater Phoenix median sales price for July rose just 1.7% to $473,000 from $465,000 last year. The sales prices are close to July listing prices at 98.6% compared to 2023’s 98.8%. July’s housing affordability index changed from 70 to 65, a 1.4% reduction in affordability compared to 2023.
Year-to-date Metro Phoenix residential real estate trends for the number of days on the market were encouraging. Through seven months of 2024, the number of days a listing sits on the market dropped 8.6% to 64 from 70 days in the same period last year.
Pending sales through July declined 8.3% compared to the 2023 year-to-date numbers.
“Qualifying for the median home with the median income looks stable,” said Bowden. “This will improve as interest rates continue to decline.”
The cost of borrowing has dropped to the lowest rate so far this year.
In spot checks around the Valley, Goodyear holds the most significant increase in closed sales, up 41.1% in July 2024 compared to last year. Phoenix and Mesa showed robust year-over-year closing data, rising over 7% in Phoenix and 8.2% in Mesa for July this year compared to 2023. Scottsdale was up 2.9%, similar to Buckeye’s 2.7% year-over-year number. Gilbert and Surprise both showed drops in closings.
“Home prices seem to be stabilizing,” Bowden said. “Although Scottsdale, Gilbert and luxury homes are seeing significant price jumps, across the rest of the Valley, prices fluctuate within a close range.”
Median sales prices varied throughout the Valley. In Scottsdale, home prices climbed 22.2% to $1.2 million, and in Gilbert, they were up 10.2%, topping $630,000. Other median prices in the Valley were around 3% above or below last year’s median sales price. Phoenix and Mesa were both down, and Buckeye, Goodyear and Surprise were both on the upside of year-over-year data.
The drop in pending sales could affect future closed deal numbers. Year-to-date 2024 pending sales in all spot-checked cities were down between 2% and 12% compared to the same seven-month period in 2023. Gilbert’s decline topped 12%, and Goodyear was down just 2.2%. Phoenix, Mesa and Scottsdale were all down around 10%.
In Pinal County, the more outlying cities posted slumping residential real estate activity. Casa Grande saw an 8.3% drop in new listings and a 29.9% decrease in closings. Maricopa city data show listings dropping 3.3% and closings down 25.3% in year-over-year data. On the other hand, San Tan Valley showed listings up nearly 30%, and closed sales jumped 22.6%.
Median sales prices in year-over-year comparisons with July 2024 over 2023 showed stability with small increases or decreases in the cities and San Tan Valley.
“With construction on semi-conductor support industries nearing completion by the end of this year and into next year, northern Pinal County is going to see more housing activity,” said Bowden. “The new hiring opportunities will attract new families to Arizona for those jobs.”
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