June Market Update: Signs of Softening Amid Growing Rental Competition
🔹 Sales Market Trends
- Active Listings: 22,443 – Up 40.9% YoY. Inventory remains elevated, indicating continued softness or motivated sellers.
- Median Sold Price/SF: $253.02 – Down 3.5% YoY. Price declines suggest opportunity for buy-and-hold investors.
- Days on Market (DoM): 57 – Up 23.9% YoY. Homes are sitting longer, providing more negotiation leverage.
- Mortgage Rates: 6.77% – Still elevated, keeping pressure on buyer demand.
- Building Permits (12-month total): 41,131 – A notable drop, down from 47,535 in April. Developers are pulling back.
🔹 Rental Market Trends
- Rental Listings: 5,678 – Up 18% YoY. More competition means landlords need to sharpen their leasing strategies.
- Median Rent $/SF: $1.38 – Down 1.4% YoY. Rents are slipping as supply grows faster than demand.
- Rental DoM: 31 – Up 17% YoY. Leasing is slower than last year, especially for poorly marketed or overpriced homes.
- Eviction Rate: 14% (7,011 filings this month) – Another major spike. Screening tenants and timely rent collection remain critical.
Key Takeaways for Arizona Investors
- The buying window is opening: falling prices and longer DOMs give investors more control.
- Rent growth is slowing, and the increase in listings is putting pressure on lease-up speed.
- Eviction activity remains high, reinforcing the need for strong tenant vetting and solid PM systems.