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April was another good month for home sellers in Ahwatukee – as it was in the Valley – judging by the available data from Phoenix REALTORS.
With data from 85045 continuing to remain unavailable, data for Ahwatukee’s other two ZIP codes for April showed days on the market continuing to fall and median and average sale prices rise along with an increase in inventory.
That data in Ahwatukee pretty much reflect the Valley market’s trajectory last month, according to Sheryl Bowden, president of Phoenix REALTORS, the Valley’s preeminent real estate membership organization that boasts over 11,000 members and the industry’s most innovative resources
“A one-month boost isn’t a trend, but the reversal of prior months’ declines is welcome news,” said Bowden. “We’re still seeing strength in median home prices even with the increase in home inventory.”
Calling year-over-year data for April throughout the Phoenix Metro region “positive news,” Bowden said new listings increased 13.2% compared to last year, with nearly 7,100 homes coming onto the market. The result is a 43.4% increase in supply and a 12.5% drop in days on the market until sale, comparing April 2024 with April a year ago.
In 85044, days on the market plummeted by nearly 20% to 49 last month compared to April 2023 while the average sales price for the 41 closed sales last month zoomed up by 30% to $647,778. The median sales price went up 14.7% year-over-year last month to $539,000.
Sellers got 98.7% of their asking price in 85044 – down a meager .3% from a year earlier – while inventory rose 43.2% to 53 homes.
In 85048, days on the market fell 12.7% last month from a year earlier to 48 for the 35 closed sales while the average sale price was 5.8% higher than a year earlier at $787,056. The median sales price also was up last month year-over-year in 85048, increasing 4.6% to $719,000. Sellers got 98.3% of their asking price, virtually unchanged from a year earlier.
Valley-wide, Bowden said, closed sales in year-over-year comparisons increased 4% to 5,550 homes last month, with the median sales price rising 7.7% to $490,000. The percent of list price received still holds at close to 99% of the asking price.
“Spring is always a strong time for sales,” said Bowden. “Between the NCAA men’s basketball finals and spring training in March and April, we had a lot going on in the market. A jump in visitors often stimulates interest in living in the Valley.”
Pinal County recorded a 14% increase in new listings, compared to a 13.4% increase in Maricopa County. In April, homes in Pinal County sat on the market slightly longer than Maricopa County, 65 days to the larger county’s 61, but for Pinal, that was a drop of over 26% from last year.
“Pinal County maintains higher affordability than its neighbor, with a median home sales price of $385,000 compared to $520,000 in Maricopa County during the month,” Phoenix REALTORS said.
“Increasing job opportunities in Pinal County along with growth in the southeast Valley is fueling more interest in the area,” Bowden said. “With industrial expansion around Phoenix-Mesa Gateway and new battery and semiconductor companies under construction, there is a lot of interest in finding homes closer to work.”
Overall, Greater Phoenix’s inventory of homes for sale, standing at 16,228 in April, is the highest in the last 12 months but still below the peak of nearly 20,000 homes on the market in mid-2022.
Housing prices are dramatically different across the Valley, Bowden said.
Scottsdale’s median sales price in April was $1.2 million, compared to $800,000 in Gilbert, $500,000 in Phoenix, $488,000 in Goodyear, $434,500 in San Tan Valley and $430,000 in Surprise.
The median sales price in April for Mesa climbed 5.1% to $488,900; in Chandler, it rose 4.2% to $565,000; and in Tempe, it jumped 15% to $574,500.
In the two Ahwatukee ZIP codes, pending sales in April slipped year-over-year by 23.3% to 23 in 85044 and 52.5% to 19 in 85048.
For buyers, hopes for any price break in the market appeared to be continuing to fade.
The Cromford Report, a leading analyst of the Valley’s home market, said that on May 5, the average square-foot price of homes hit a record $308.
“While they continue to predict a massive imminent price drop, as they have done continuously since 2018, the usual YouTube housing pundits must be feeling less than thrilled to be proven so completely wrong year after year,” the Cromford Report said. “However they remain undaunted.
“Their predictions have little to no substance behind them and I notice a lack of confidence creeping into their voices. Bad news attracts clicks is something they do understand. Again and again, they make the mistake of thinking a weakening of demand will force prices down.
“The market sees low volumes when demand is weak, but to get prices to come down you need excess supply and desperate sellers.”
It added, “The market deserves some respect for its resilience and sellers can celebrate the new all-time high.”
Noting buyers Valley-wide “have 37% more homes to choose from than they had last year,” the Cromford Report said mortgage interest rates remain a major issue and are “limiting demand.”
“Pricing is the brightest spot for sellers, and advanced further than expected over the last 30 days,” the Cromford Report stated at the beginning of May. “The mix of homes that closed favors larger, more luxurious properties, as evidenced by the average square foot (sales home size) rising from 1,975 in March to 1,996 in April.”
“Various reports suggest that more buyers are looking for homes that are move-in ready and are less willing to consider homes that need a lot of work to bring up-to-spec,” it added. “This trend may partially explain why new home sales remain robust and far healthier than re-sales, and it also opens up an increased opportunity for fix-and-flip investors.
“They should be seeing less competition from iBuyers, institutional investors looking for homes to rent and ordinary home buyers. The consequence is that they may be able to get better gross margins between their buying and selling prices than in the market that prevailed over the last several years. However, this effect is balanced by inflation causing fix-up costs to increase.”
With mortgage rates hovering around 7%, the Cromford Report added. “The current market is holding up a little better than expected.”
Any bargains are more likely to be found outside the heart of the Valley, it added. “Several re-sale markets are much more favorable to buyers, especially Maricopa, Buckeye and San Tan Valley, all of which suffer strong competition from new homes.”
“The outlook for May is more of the same,” the Cromford Report predicted, adding that the market remains “very sensitive” to mortgage rate changes.
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This article was originally published by a www.ahwatukee.com . Read the Original article here. .