Demand keeps slowing in Phoenix housing market; prices still up

By Mike Sunnucks | Rose Law Group Reporter

Demand for home sales has slowed down significantly in the Phoenix market, according to new data from real estate research firm Zonda.

“Home sales have fallen considerably since May,” said Steven Hensley, advisory manager for Zonda.

Hensley said Phoenix new home sales in August are down 31% from May and 37% from a year ago.

He pointed out that the summer 2020 saw unusually high home sales demand in Phoenix when buyers were taking advantage of historically low mortgage interest rates in the midst of the coronavirus pandemic.

“It is important to remember last year was an anomaly,” Hensley said.

Still, home sales are down 15% comparing Aug. 2021 to Aug. 2019.

Hensley said rising prices, low supplies of homes for sale and new subdivisions, traditional summer slowdowns in Phoenix sale activity and some builders continuing to limit the number of monthly sales are all contributing to the slowdown.

Hensley did note that sales demand was flat from July to August which could indicate the demand dive may have reached a floor.

Phoenix area new home prices continue to look upward even with the summer drop in sales demand.

The median prices for a new home in Maricopa and Pinal counties is $440,000, according to Zonda’s August data.

That is up 29% over the past 12 months.

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