The Seesaw Market
The Phoenix real estate market is always in flux, but currently in a way that effectively changes nothing. How is that possible? The answer lies in the seesaw balance of supply and demand– only in this case each side’s changes offset the other. Supply – it’s up. Demand – it’s up. The result is a static balance. Leaving us a market that continues to slightly favor buyers in most areas (strongly in the outlying areas) just as it has since November of 2024.
The brightest spot in the market (as has been true for the last 3 years) is the luxury market. It is performing better than ever courtesy of the stock market. Conversely, the darkest spot is condos under 300K. To quote the Cromford Report: “Sellers have the least advantage in the condominium market under $300K as supply is up 20% over last year and contracts in escrow up only 13%. April sold prices are down 9.5% from last year in this segment with the median size sold at 1,048 sq ft, historically prices for this segment are similar to where they were 5 years ago around May 2021.” By contrast, “Single family homes between 1,200-2,400 sq ft have shown the most stability in prices over the past 3 years with minimal fluctuation.”
Where this market heads next depends largely on the economic concerns of inflation, war, and jobs. Whatever the market brings, we will report on as it unfolds.
Russell & Wendy Shaw
(mostly Wendy)