Market Update September 9th, 2024

The analysis of Maricopa County's real estate market for August reveals some significant trends and fluctuations compared to previous periods. In August, there were 5,936 closed transactions, a decrease of 9.0% from 6,556 in the same month of the previous year, and a 6.2% decline from July's figures. This drop in closed transactions included 1,453 new home sales, down 9.6% year-over-year but showing a 6.4% increase from July, and 4,510 re-sale transactions, decreasing by 8.9% from August 2023 and 9.5% from the preceding month. Despite 22 working days in August 2024 compared to 23 in August 2023, which partly explains the reduced activity, the extent of the decline suggests other influencing factors at play.

The real estate pricing dynamics present a slightly different picture. The overall median sales price in August stood at $470,000, marking a 2.4% increase from August 2023 and a slight 0.5% increase from July. Breaking this down further, the median sales price for re-sale homes was $450,000, showing a modest year-over-year increase of 1.1% but remained unchanged from the previous month. In contrast, new homes exhibited a stronger price growth, with the median price reaching $513,633, up 2.7% from the previous year and a 1.5% increase from July.

Interestingly, despite the general decline in transaction volumes, the new home market captured a slightly larger share in August 2024, accounting for 24.4% of all sales compared to 24.5% a year earlier. This indicates a shift in buyer preference or market availability favoring new constructions, albeit marginally. It's important to note that while the market has seen overall price increases roughly in line with inflation, it remains 4% below the peak pricing of $490,000 achieved in May 2022, pointing to a market that has not fully recovered to its highest valuation.

In summary, Maricopa County's real estate market in August 2024 demonstrated a complex interplay between declining sales volumes and moderately rising prices. While transaction numbers were notably lower, suggesting a cooling market, prices have held relatively stable and even showed slight increases. This suggests that while fewer transactions are occurring, the demand and pricing power remain somewhat resilient, painting a picture of a market experiencing adjustment rather than a downturn. This stable yet sluggish trend might influence future market predictions and investor confidence in the regional real estate landscape.

Have a great week everyone!