Phoenix Housing Market Slowed in October
October Sales Down 16% from peak September
The Phoenix housing market slowed in the month of October as sales dropped 16.2%. This is likely due to three factors. First, September sales were at a peak for 2008 and due to a push by many buyers to take advantage of Down Payment Assistance before its elimination October 1. Second, broader economic concerns certainly made some buyers more hesitant to purchase. Third, the elimination of down payment assistance will push some buyers out of the local market and probably out of other markets. The median sold price continues to decline which indicates that the major activity in the Phoenix housing market is at the low end of the pricing scale.
Looking Ahead
Market will continue to ease consistent with holiday season. Extent of ease will determine base for usual uptick in sales after the turn of year. Pending activity charts for 2008 currently parallel that seen in 2002. Stronger starting base on January 1 could yield a curve more consistent with 2003 going forward. Guidance is that this continues to be a great time to for home buyers to purchase Phoenix real estate. Sellers can sell but have to be dedicated to that outcome.
Highlights
- Sales activity in the greater Phoenix home market slowed 16% in October from peak prior month. The number of homes currently under contract slowed 11%.
- Median home value dropped 2.9% from the month before, likely driven by foreclosure-related sales at lower band of market and broader price reductions.
- Market now at onset of holiday quieter period.
- Buyer opportunities abound as foreclosures and aggressively priced homes present strong value propositions.
| Single family | October 2008 | Change | October 2007 | Change 2008 vs. 2007 |
| Available Inventory | 54,190 | +2.6% | 58,331 | -7.1% |
| Under Contract AWC* | 6,229 | |||
| Sold | 5,176 | -16.2% | 3,421 | +51.3% |
| Avg. Days on Market | 102 days | 0.0% | 116 | -12.1% |
| Median Sold Price | $169,000 | -2.9% | $239,000 | -29.3% |
