For the first time in months, year-over-year Metro Phoenix housing data for January 2024 showed more positive trends than negative movement, according to Phoenix REALTORS®.
“Coming into January, we believed that 2024 was going to be better than 2023,” said Sheryl Bowden, president of Phoenix REALTORS Board of Directors. “The January numbers highlight a promising start to the year.”
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Listings, closed sales, sales prices and the percent of list price received were all positive compared to a year ago. Declining interest rates and an increasing Valley population all combined to start the new year on an affirmative note. Additionally, days on the market dropped by more than a week, down almost 12% from 77 days in January 2023 to 68 days this year.
Listings climbed nearly 6% to 6,600, and closed sales were up over 2% for January. The median sales price for single-family homes rose 5.5% to $464,000 from $440,000 last year. The average sales price climbed 8.4% over last year to almost $615,000 compared to $567,000. Average prices are affected by the number of high-end or entry-level homes sold during the month, where the median is the midpoint of all sales.
The percent of list price received jiggled slightly over 2023, but this figure has been within a few points over or under asking price every month over the past 12.
“Overall, the signs look good heading into the new year,” said Bowden. “The downward cycle appears to have hit bottom, and we’re moving up again. If mortgage rates hold or decrease more, we should see a great year ahead for residential real estate.”
While much of the January Metro Phoenix housing trends point in a positive direction, Bowden notes there are two cautionary figures to monitor: The number of pending sales is down 33.1% from 2023, and the housing affordability index dropped 8.5% to 65 from 71.
The lower the affordability number, the fewer the families who can afford to buy the median home. Though down from last year, the housing affordability index is part of an upward trend over the latter part of 2023 and into 2024, a sign that more families may afford a broader number of homes.
“Now that there are more listings on the market making for a robust inventory, we should see increasing sales activity,” Bowden said. “The inventory still tops a three-month supply, but houses are moving more quickly when they are listed.”
Pending sales dropped to 3,608, the second-lowest pending number in the last 12 months. On the other hand, new listings rose to 6,593, the highest increase over the same period.
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