As a real estate professional and the broker in charge of Arizona for our firm, I find three key trends particularly interesting today.

First, there has been a dramatic rise in the supply of homes in the Metro Phoenix area. Over the past 15 days, the inventory of Single Family Detached (SFD) homes has increased by 547, marking a 60% rise compared to this time last year. Despite national news narratives about a housing shortage, that is not the case here in Arizona.

Interestingly, this surge in supply has been met with an equally significant increase in demand. The number of SFD homes under contract has risen by 61% compared to the same period last year.

Why is this noteworthy? Because, for now, the 60% increase in supply and the 61% increase in demand effectively balance each other out. As a result, the supply-demand ratio remains nearly identical to last year and has improved by more than 6% to 36% in the past 45 days—a significant shift. However, based on experience, demand is far more likely to decline than supply.

For instance, if demand were to drop back to last month’s levels or even to the levels seen this time last year, the supply-demand ratio would fall to approximately 23%. This would place substantial downward pressure on prices—an important factor to watch, especially given that Phoenix currently ranks highest in the U.S. for price reductions.  Questions?  Please feel free to DM or Text me.  602.770.7205