October 2024 Real Estate Market Intel

October 2024 Market Intel for Maricopa County and Local Trends

As we move through October, the real estate market in Maricopa County continues to offer both opportunities for buyers and sellers. Here’s a breakdown of the current trends impacting the local housing market.

Mortgage Rates and Affordability

One of the most significant shifts we’ve seen recently is the reduction in mortgage rates that began in early September. Mortgage lenders have adjusted, and for the past few weeks, rates have been more competitive. A lower interest rate can have a meaningful impact on monthly payments. For example, the average price of a single-family home in Maricopa County is currently $683,000. A reduction of just 0.5% in the interest rate could result in savings of nearly $200 per month for a buyer at this price point.

However, it’s important to note that these savings are averages. A buyer’s specific rate depends on factors like credit quality and the amount of equity they have, but the bottom line is that rates are looking more favorable for those considering entering the market.

Rising Housing Prices and Buyer Demand

With the decrease in interest rates, we’ve seen more buyers re-enter the market. This uptick in demand has come at a time when housing prices across the Valley have continued to rise.

Prices in the Phoenix area have been on an upward trajectory since 2009, showing resilience even in the face of economic fluctuations. Year-over-year, the median sales price has risen between 4-7% in most markets around the Valley, with some areas seeing even larger increases. This consistent rise in prices means that homeowners continue to see solid returns on their investments.

For buyers, this presents a unique dynamic: while prices are increasing, lower interest rates are offering a bit of relief, making homes more affordable despite the higher price tags.

Inventory on the Rise

Fortunately for buyers, inventory has also been steadily increasing over the past year. In Maricopa County, the number of available homes is up 43% compared to one year ago. This increase in inventory might suggest a more competitive market with more options for buyers—but that may also not be quite the case.  As winter visitors return, so does our busy sales season, and with rates lower, it’s quite possible that increased activity will mean dwindling inventory levels. 

Despite the rise in available homes, demand in Arizona remains high, and the market is still underserved. This pent-up demand keeps prices strong and competition for homes tight, especially in desirable areas.

Sale Prices Holding Strong

Another key indicator of the strength of the local market is how closely sale prices are aligning with list prices. Over the past 12 months, single-family homes have sold at an average of 98% of their list price. Townhomes and condominiums have performed similarly, demonstrating a high level of buyer demand and competition for available properties.

As more buyers enter the market and inventory remains relatively tight, we don’t expect this trend to change much. Sellers can expect to continue receiving offers close to their list prices, while buyers will need to remain competitive to secure their desired home.

Final Takeaway: Partner with RE/MAX Sun Properties for Your Real Estate Success

The Maricopa County market is still competitive despite the increase in inventory, and with more buyers coming back due to lower interest rates, now is the time to act. Whether you’re buying or selling, it’s crucial to have an experienced REALTOR® by your side to help you navigate these market dynamics.

Buyers: Don’t wait! Work with a REALTOR® and lender to understand the specific dynamics of your market. Arizona will remain a competitive place to buy, so having an expert on your side will make all the difference.

Sellers: Having a clear strategy with your agent is more important than ever. With more inventory, your home will face more competition. Talk with your agent and set clear expectations about how long you want to be on the market. A well-prepared strategy will help ensure you get the best possible outcome.

At RE/MAX Sun Properties, we pride ourselves on building strong relationships with our clients. We encourage you to ask the tough questions—about our qualifications, our commitment to finding you the right home, and our ability to negotiate the best terms on your behalf. Whether you’re buying or selling, our team is here to give you the time, attention, and expertise you need.