As we step into the second half of 2024, the Arizona real estate market continues to show interesting trends that both buyers and sellers should be aware of. Whether you're considering purchasing a home or thinking about selling, understanding the current market dynamics is crucial to making informed decisions. Here’s a breakdown of the key highlights from the July 2024 market report and what they mean for you.

1. Decrease in Listings: A Tightening Market

In July 2024, the number of active listings saw a notable decrease across the board. For example, single-family home listings dropped by 7.58% compared to June, and even more sharply by 19.53% over the past three months. This trend indicates a tightening market, which could be beneficial for sellers as reduced inventory often leads to increased competition among buyers, potentially driving up home prices.

For Sellers: This is a prime time to list your home. With fewer properties on the market, your home has a better chance of standing out and attracting motivated buyers. The competitive environment could lead to multiple offers, helping you secure a favorable selling price.

For Buyers: If you're in the market to buy, be prepared for a competitive landscape. It’s essential to work closely with your REVINRE professional to stay on top of new listings and be ready to act quickly when you find the right property.

2. Price Adjustments: A Slight Cooling in the Market

The average price per square foot has experienced a slight decline, with a 1.70% drop from June and a 4.00% decrease over the last three months. The median price per square foot also saw a slight dip. This cooling effect suggests that the market might be stabilizing after a period of rapid price increases.

For Sellers: While prices are still strong, the recent cooling trend suggests that pricing your home competitively is key to attracting serious buyers. Your REVINRE professional can help you determine the optimal price to ensure your home sells quickly while maximizing your return.

For Buyers: The slight dip in prices could be an opportunity to find better deals. However, given the competitive nature of the market, it’s important to make strong offers, especially on properties that are well-priced and in desirable locations.

3. Days on Market: Homes Taking Slightly Longer to Sell

In July, the average days on market (DOM) increased slightly to 68 days, up from 66 days in June. The median DOM also increased to 49 days. This indicates that while homes are still selling, it’s taking a bit longer than in previous months.

For Sellers: Be prepared for your home to take a little longer to sell. This isn’t necessarily a negative; it simply means that the market is adjusting. Working with your REVINRE professional to enhance your home’s appeal and market it effectively can help reduce the time it spends on the market.

For Buyers: The increase in DOM means you may have a bit more time to consider your options. However, don’t wait too long, as desirable properties can still move quickly.

4. Sales Prices: A Stable Market with Slight Fluctuations

The average sales price in July 2024 was $560,906, a 4.51% decrease from June. The median sales price also decreased slightly to $440,000. Despite these fluctuations, prices remain relatively stable year-over-year, with a small increase from July 2023.

For Sellers: Even with slight price adjustments, the market remains strong. Ensuring your home is priced right from the start can attract buyers quickly, helping you achieve a sale that meets your financial goals.

For Buyers: The stable prices provide a clear picture of the market’s value. Use this to your advantage when negotiating, and rely on your REVINRE professional’s expertise to guide you through the process.

5. Supply and Absorption Rate: Signs of Market Equilibrium

The supply of homes in July stood at 2.86 months, slightly down from June. The absorption rate, which indicates the percentage of homes sold in relation to the number of homes available, was 34.98%, showing a market that’s moving towards equilibrium.

For Sellers: A balanced market means fair conditions for both buyers and sellers. However, positioning your home effectively in the market remains crucial to securing a timely and profitable sale.

For Buyers: With the market showing signs of equilibrium, it’s a good time to buy. Prices are stabilizing, and there’s a healthy selection of homes available, giving you more options to find the right property.

Conclusion: Strategic Decisions in a Dynamic Market

The Arizona real estate market in July 2024 presents both opportunities and challenges for buyers and sellers. For sellers, the reduced inventory and stable prices suggest it’s a good time to list your home. For buyers, the slight cooling of prices and increased days on market could provide opportunities to find the right home at a fair price.

At REVINRE, we’re committed to helping you navigate these market conditions with confidence. Whether you’re buying or selling, our professionals are here to provide you with the insights and support you need to make the best decisions for your real estate goals. To get in touch with one of our professionals, call us at (602) 562-7222 or visit REVINRE.com.