The Phoenix housing market is cooling off
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Illustration: Annelise Capossela/Axios
In 77% of the Phoenix area’s ZIP codes, sellers listed their homes in July for less than they did last year.
Why it matters: Some home buyers could be getting better deals than they did last year when mortgage rates were at comparable levels.
By the numbers: Realtor.com’s July Market Hotness Index, based on listing views and time on the market, ranks Phoenix in the bottom third of the metro areas it tracks.
- On the supply side: Phoenix area homes are sitting on the market for 66.5 days — 9.5 days above the national average. But that’s three days shorter than last year.
- On the demand side: Buyers are looking less often at Phoenix area properties — now in the bottom 20% of the U.S.
Yes, but: The median price for an existing single-family home in the Phoenix area was $477,700 in the second quarter of this year, up 0.7% from the same time last year, per the National Association of Realtors.
- Much of that time, though, mortgage rates were several ticks below where they are today.
Zoom in: In about two-fifths of the area’s ZIP codes, listing prices are at least 5% lower than they were last year, according to Realtor.com. ZIP codes with the biggest drops in listing prices:
- Scottsdale | 85251, down 27.6% — Homes typically spent 78.8 days on the market, with a median listing price of $488,500.
- Phoenix | 85014, down 26% — 77 days and $444,575.
- Scottsdale | 85258, down 25.6% — 68 days and $807,500.
The other side: Listing prices have jumped in other Phoenix ZIP codes:
- Gila Bend | 85337, up 40% — Homes typically spent 18.5 days on the market, with a median listing price of $230,000.
- Cave Creek | 85331, up 16.7% — 73.2 days and $1 million.
- Apache Junction | 85119, up 10% — 56 days and $519,750.
What we’re watching: Elevated mortgage rates could continue to slow home sales. The average 30-year rate was 6.67% on Aug. 13, near a one-year high.
- NAR estimates the monthly home payment for a typical existing home in the U.S. jumped $219 in the past quarter as mortgage rates trended up.