September 2024 Maricopa Real Estate Market Update
As we move into the fall, the Maricopa real estate market is experiencing the effects of several larger trends seen throughout the Phoenix metro area. For sellers, the market is a bit of a mixed bag, with rising supply and sluggish demand putting some pressure on prices. While these factors are contributing to a cooling off in the overall market, there are still some opportunities, especially for those looking to purchase a home. Let’s dive into the latest Maricopa real estate statistics and what they mean for both buyers and sellers.
Rising Supply and Increased Competition
One of the most notable trends this month is the rise in active listings. As of September 1, 2024, active listings across the Phoenix area, excluding under contract listings, have jumped by a substantial 54% compared to the same time last year. In Maricopa specifically, we’re seeing a similar trend, with more homes sitting on the market longer, and fewer buyers entering into contracts. This increased inventory has grown by 5.5% from just a month ago, signaling a continued rise in supply that could persist through the remainder of the year.
Typically, the real estate market sees an uptick in supply between August and November, but this year the trend started earlier than usual. For sellers in the Maricopa real estate market, this rise in inventory means more competition. To stand out, many sellers are offering concessions or making price reductions, a trend that’s becoming common across the Phoenix metro area. In fact, throughout August, sellers across the region continued to lower prices or offer incentives to attract buyers.
Buyer Hesitation Continues
On the demand side, the Maricopa real estate market is facing headwinds similar to those seen across the wider Phoenix area. Pending listings are down 12.2% compared to the same time last year, and the total number of under-contract homes has decreased by 6.4%. For buyers, this softer demand may present an opportunity to negotiate better terms and take advantage of price reductions, especially with interest rates beginning to stabilize.
That said, despite the Federal Reserve’s signals that a rate drop may be on the horizon, buyers remain hesitant. Many potential homebuyers are waiting for mortgage rates to dip below 6% before making a move, resulting in sluggish demand across the board. The Cromford® Market Index, which tracks the balance between supply and demand, has remained nearly unchanged for the past month, indicating a market that’s currently in a holding pattern.
Pricing Trends: A Glimmer of Hope?
While the market has been slower, there is some positive news for sellers when it comes to pricing. The average sales price per square foot has increased by 3.0% from last year and rose slightly by 1.3% from July to August. However, the median sales price has remained stagnant, sitting at $355,000—a modest 1.1% increase from this time last year. While this growth is encouraging, it’s important to note that this increase is below the rate of inflation, meaning that in real terms, home prices have actually become more affordable than they were a year ago.
For sellers in Maricopa, this could mean adjusting expectations when pricing homes. While top-tier luxury homes are seeing impressive gains (with a recent record-breaking $32.4 million sale in Paradise Valley), the mid-range market is much more competitive. Homes that are priced too high may end up sitting on the market longer, especially as buyers continue to be cautious.
Looking Ahead: What to Expect in the Maricopa Real Estate Market
As we head into the latter half of the year, the Maricopa real estate market is likely to continue facing some of the same challenges seen across the wider Phoenix metro area. Rising supply and tepid demand mean that sellers may need to get creative with pricing and concessions to attract buyers. On the flip side, buyers who are in the market may find themselves with more negotiating power and the ability to secure a home at a more favorable price.
If you’re looking to buy or sell in the Maricopa real estate market, now is the time to consult with a local expert who understands these shifting dynamics. Whether you’re a seller hoping to stand out in a crowded market or a buyer looking for the best deal, it’s crucial to have a strategy that aligns with current Maricopa real estate statistics.
To learn more about how these trends could impact your real estate goals, reach out today for a personalized consultation! Let’s navigate the Maricopa real estate market together and find the best path forward in these changing times.
Contact us today to learn how these trends could impact your real estate plans in Maricopa!
Best regards,
Ron Hollingsworth
Hollingsworth Realty Group
Phone: (520) 705-7442
