Phoenix home sales are down 42%, Zillow report says
PHOENIX (3TV/CBS 5) -- A new report is out by Zillow which is showing how quickly and dramatically home sales in the Valley of the Sun are dropping.
As mortgage rates rise to record highs, home sales are decreasing rapidly as fewer families can afford to take on a mortgage. According to Zillow, pending sales are down across the country by nearly 20% from August and by nearly a third over the past year. As of this week, the average home value in the Phoenix market is around $451,000, a decrease of about 6% since May, but up 61.2% since September 2019.
The most startling statistic is that pending sales are down 42.4% compared to last September while new listings fell by nearly 10%. A number of price cuts are being seen across the board as well, with nearly half of homes on the market seeing a price reduction. Homes are also staying on the market longer, spending an average of 24 days more than they were a year ago.
“The late-summer mortgage rate reprieve brought a short-lived surge of buyers back into the market, proving that many priced-out home shoppers are poised to buy when homeownership becomes more affordable,” said Jeff Tucker, senior economist at Zillow. “Unfortunately, shoppers this winter are more likely to contend with mortgage rates in the ballpark of 7%, making even this summer’s rising rates look modest by comparison.
They’re not the only ones seeing a significant change in the housing market. Arizona’s Family previously spoke with Shelly Sakala, a realtor with The Sakala Group. She said that the market has seen the fastest housing market slow down, but it could take a while before the downturn really affects Phoenix because of its robust jobs market “We have about 300 people move into Maricopa County a day,” Sakala said. “Inventory is still going to be low, it’s still not going to catch up. Those are things that are going to keep our market strong.”
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