Phoenix Real Estate Market Recap

As we embark on a new year, it's imperative to evaluate the ever-evolving landscape of the real estate market. While 2023 had its fair share of ups and downs, one segment that consistently captured the spotlight was detached single-family homes. Let's take a look into the performance of these homes and briefly touch on other residential categories to provide a comprehensive overview of the real estate market.

Detached Single-Family Homes: The Standout Stars

Year-over-year data reveals that detached single-family homes have been the undisputed stars of the residential real estate market. In 2022, there were 100,833 active listings, and by the end of 2023, that number had decreased to 87,180, marking a 13% decline. Despite this decrease, these homes continued to dominate the market.

One key metric that often holds investors' attention is the average sale price, which saw a marginal drop from $612,568 in 2022 to $607,914 in 2023, reflecting a mere 0.76% decrease. This stability is a testament to the enduring appeal of detached single-family homes, making them a preferred choice for both buyers and investors.

However, it's worth noting that the number of new listings decreased by 23% in 2023 compared to the previous year. This reduction in supply can be attributed to various factors, including rising construction costs and limited available land for new developments.

Another noteworthy trend is the decline in the total number of homes sold, dropping from 66,015 in 2022 to 57,430 in 2023, a 13% decrease. While this might seem like a substantial drop, it aligns with the overall market conditions and can be partially attributed to the reduced inventory.

While detached single-family homes commanded the lion's share of attention, other residential categories experienced varying degrees of performance in 2023.

Apartment Style:

The apartment-style/flat segment, with 5,724 active listings in 2023, saw a 9% decrease compared to the previous year. New listings fell by 18%, and the total number of homes sold dropped by 20%. Despite these declines, the average sale price remained relatively stable, down by only 2%.

Townhouse:

Townhouses, with 7,859 active listings in 2023, saw a 12% decrease. New listings declined by 22%, and the number of homes sold decreased by 18%. Despite these declines, the average sale price showed a slight increase of 4%.

Modular/Pre-Fab:

The modular/pre-fab category had 106 active listings in 2023, down 25% from the previous year. New listings plummeted by 40%, and the number of homes sold decreased by 39%. The sold volume decreased by 41%, and the average sale price dipped by 2%.

Mfg/Mobile Housing:

Mfg/mobile housing was the only category that saw an increase in active listings, with a 13% rise in 2023. New listings increased by 5%, but the number of homes sold decreased by 2%. The sold volume dropped by 14%, and the average sale price decreased by 6%.

Final Thoughts:

In 2023, detached single-family homes remained the most sought-after residential properties, displaying remarkable stability in terms of average sale prices. Other residential categories faced varying challenges, with declining numbers of new listings and homes sold.

The information provided in this blog post is for informational purposes only and should not be construed as financial, investment, or real estate advice.