Phoenix Housing Market Slowing Down

Phoenix is currently experiencing a slowdown in the housing marking. Compared to the rest of the country, the Phoenix area is experiencing a more substantial year-over-year decrease.

The RE/MAX national housing report for March 2019 was released last week, and it showed housing data for 54 markets across the nation. According to the report, March home sales were down in Maricopa County by 11.3% compared to the same time as last year. The national decrease was 8.6%.

The average number of days on the market also increased last month. In March 2018, it was 49, and it rose to 53 in March 2019. The national average was 59 days.

While homes may be spending more time on the market, their prices continue to rise and supply continues to decrease. The local median price increased to $267,000 last month, while it was $265,000 in February 2019 and $254,900 in March 2018. The national average price was $246,000. The supply of houses available for purchase is also decreasing.

RE/MAX CEO Adam Contos saw positive signs in these numbers. “It was encouraging to see month-over-month sales improve during March,” Contos said. “Although the seasonal bounce that typically ends the first quarter wasn’t as strong as in the past few years, conditions are in place for a healthy spring selling season.

Falling interest rates, rising inventory and moderating price increases against the backdrop of a healthy overall economy are cause for optimism for buyers and sellers alike.” However, it was the smallest February-to-March increase since 2014.

Across the country, the housing market has experienced eight consecutive months of year-over-year sales declines.