Blog Post: December 2024 Arizona Real Estate Market Update
As we close out 2024, Arizona’s real estate market continues to evolve, offering both opportunities and challenges for buyers, sellers, and investors. Let’s break down the latest market trends and what they mean for you.
Active Listings See a Surge
Active listings have surged by 35% compared to December 2023, reaching 21,593. This increase means more options for buyers, but also more competition for sellers. Including listings under contract, total active listings are up by 34%. While this growth is beneficial for buyers seeking more choices, it signals a need for sellers to strategize effectively to stand out.
Pending Listings and Sales Activity
Pending listings are holding steady with a modest 0.3% increase year-over-year. However, compared to last month, they’ve dropped by 8.8%, indicating a seasonal slowdown or perhaps some buyer hesitation. Meanwhile, monthly sales rose by an impressive 11%, totaling 5,139 transactions. This spike demonstrates that demand remains strong despite rising mortgage rates.
Pricing: Stability in Focus
When it comes to pricing, stability is the name of the game. The average price per square foot for closed listings is $289.69, a marginal 0.2% increase from December 2023. The median sales price remains unchanged at $450,000, showing no upward pressure on pricing—a reflection of the current balance between supply and demand.
Seasonal Trends and Market Dynamics
The peak in active listing counts occurred on November 24, 2024, at just over 22,000, followed by a typical seasonal decline. This pattern is expected to last for 5 to 8 weeks. Compared to last year, the 35% rise in listings is slightly less dramatic than the 40% increase seen in November, offering a glimmer of relief for sellers.
Demand is Stabilizing
The Cromford® Demand Index has ticked up to 77 from its September low of 73.1, showing early signs of recovering buyer interest. However, the supply index has also increased to 89, giving buyers more choices and creating added competition for sellers. These trends are critical for anyone navigating Arizona’s real estate market.
Key Takeaways for Investors
For real estate investors, particularly those focused on single-family homes in Maricopa and Pinal Counties, these trends present intriguing opportunities. Increased supply and stable pricing make this an excellent time to scout for promising deals, especially in high-demand areas like Phoenix, Gilbert, and Chandler.
The luxury market also remains a bright spot. High-end properties are benefiting from buoyant stock and crypto markets, helping to maintain strong performance in this segment. However, mainstream markets are awaiting improvements in mortgage rates to see a significant boost.
How to Navigate These Trends
If you’re considering investing, buying, or managing properties in Arizona, now is the time to plan strategically. Work with trusted property management experts to maximize your returns and stay competitive in this dynamic market. Whether you’re looking at Phoenix, Mesa, or Tempe, understanding local market conditions will be key to making informed decisions.
Stay tuned for more updates as we move into 2025. With market conditions stabilizing, there’s much to look forward to in Arizona real estate. For more insights and guidance, reach out to your trusted real estate professionals today!
