More metro Phoenix homeowners are selling homes at a loss

State of play: More than 3% of metro Phoenix homes sold at a loss from August to October — up from 0.74% a year ago.

• The median loss was around $32,450, per Redfin data.

What's happening: This is a reflection of high interest rates slowing down home value growth.

• Prior to rate hikes that began in March 2022, Phoenix home prices surged at a record pace, meaning buyers didn't have to hold onto their homes long to see returns on their investments.

Reality check: Homeowners selling at a loss are most likely those who bought within the last two years.

• Most sellers who have owned for longer are still turning profits in the Valley's low-inventory market, per Redfin.

The big picture: Losing money on a home sale is becoming more common across the U.S.

• The Valley's rate was slightly higher than the national median of 3.22% but well below that of many other major metros.
• The highest share and largest losses were in San Francisco. Roughly one in seven S.F. owners lost money on their home sale, with a median loss of $122,500.