The first Quarter of 2025 is in the rear view mirror. So what's going on in the Phoenix metro area for housing this year? Active inventory is up year over year, week 13, by 33%. Inventory is now higher than in the previous 5 years. Homes are taking a few days longer to sell. The total dollar volume of sales is holding steady, but the List Prices are falling due to weaker demand.
Active listings have ticked upward as inventory opens up as demand slows due to higher interest rates. To be fair, the last 5 years were a roller coaster in sales, activity and the lowest volume recorded in the MLS in decades.
At the end of the first quarter of 2025, the days on market increased to 77 days. In 2024, homes took 65 days to sell. However, roll back to 2025 and homes took 76 days to sell.
The interesting fact about historic quarterly dollar volume of sales for Maricopa County is that $9 Billion in sales keeps popping up. Q4 2024; Q3 2024; Q1 2024; Q1 2023, Q3 2019. So sales are still relatively stable - for now. Sales for Q2 2020 were just under $9 billion. The highest sales volume for any quarter was Q2 2022 at $15 billion. These sales statistics include all of Maricopa County, Southern Yavapai County and northern Pinal County, about a 500 square mile area of Arizona.
Pending prices have been falling since January, 2025. If you look at Q1 2024, the price per square foot average was $330.01; Q1 2025 is $335.80. Demand has been falling and days on market are rising.
For a historic look at price per square foot for average sales, this chart is unprecedented with 20 years of graphs. 2005 includes the rise in prices beginning at $142 per square foot. At the bottom in pink, the lowest price per square foot in during these 20 years occurred in 2011 with prices starting at $81 per square foot - cheaper than you could build a home. Fast forward to 2025 and the average price per square foot is $311. This chart clearly illustrates the affordability issue for current home buyers.
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