Hows the Market?? Here is your Phoenix / West Valley area Real Estate Market Report for July 2023. Hope your all staying cool out there!! Man, this has been a brutal summer! I sure wish someone would come up with an ICE block delivery truck for the swimming pools!! LOL! Back the truck up and cool down the pool! Wouldn’t that be so great!! Well now that we are through July, hopefully it will go back to regular hot, instead of SCORCHING hot! Well speaking of Hot, a few West Valley cities were hot with closed sales last month, so lets get into it!
Several Cities had the strong sales for the month of July, of course keep in mind these homes would have gone under contract in June. Waddell was the hot spot for sales last month with a 100% increase over last year 38 closed sales vs. 19 in 2022. Surprise killed it compared to 2022 sales as well, 40.4% increase with 313 sales compared to 223 last July. Heat was on in Buckeye as well with a 27.1% increase with 230 sales compared to 181 in 2022. Litchfield Park with 14.0% increase, with 57 sales versus 50. Tolleson also increased sales 12.8% with 44 sales versus 39.
All other cities had a decrease in sales compared to last year. Glendale coming up short with 237 sales compared to 263 in 2022 for a -9.9% decrease. Phoenix -13.4% with 1153 closed sales vs. 1332. Peoria, 218 vs 262, down -16.8%. Avondale -21.78%, 67 vs 78. Laveen 47 vs 65, down -27.7% decrease. Goodyear down -28.2%, 112 vs 156. El Mirage down -31.1%, 31 sales vs 45. And Maricopa country overall came up short -4.4% with only 5917 sales compared to 6191 last year.
Compared to the rapid slow of the market in the last quarter of 2022, 2023 continues to gain some momentum. The main contributor to that is the inventory levels beginning to drop again, supply and demand. For example October 2022 most West Valley cities were at 3-4 months of inventory, which teetered on a buyer’s market. Currently only one west Valley city is still at that level, Waddell. All other cities are back to “Seller’s Market” inventory levels, see chart. As the inventory goes down, typically prices go up. We shall see!!
Regardless of inventory levels, prices have dropped in all West Valley cities, some more than others, check out the chart below to see how your city is performing. There is another market condition causing this and that is interest rate hikes. The interest rate increases have made it less affordable for buyers, buyers have less buying power than they did this time last year. Also forced many first time home buyers out of the market. Less buyers shopping, less competition.
Multiple offers!! don’t be fooled, by a slower market and high rates! We are still getting multiple offers on listing and seeing some cash offers!! Some listings selling over asking price!!
Sellers need to be prepared in ALL price ranges, that buyers are asking for loan concessions to buy down interest rates.
This also applies to the New Build contracts we have negotiated recently, lots of good deals out there, just remember we need to be present on your first visit, the sales agent in the office works for the builder, Let us work for you!