In the month of October 2022, the softening of prices across the Phoenix Metro continued as buyer demand waned. First starting in May of 2022, the correction shows no signs of slowing. Being that the real estate industry always slows down during the months of November, December, and January, the correction is looking to continue through the holidays and until after the New Year.
We now have 3 sellers markets, 2 balanced markets, and 12 sellers markets. As we said earlier, it is expected that all of the 17 main cities/area measured in the valley will become buyer’s markets soon. Only time will tell when the correction will slow.
Last month, it was the Paradise Valley real estate that adjusted the most. When comparing statistics from early October, PV’s overall market health fell by over 30%. In contrast, the Tempe, Arizona market adjusted just one percent. This isn’t to say PV is a weaker market, it’s overall health is STRONGER than that of Tempe. Quite simply, it was Paradise Valley’s turn to take the heat.
Over the past 6 months, the strongest performing markets have been in the Northeast valley. As of November 2022, this is still the case. Currently, the markets of Buckeye and Queen Creek are roughly half as strong as the market of Fountain Hills, Scottsdale, and PV.
In October of 2022 there were just over 6,0oo overall closings (including new homes and resale listings). This is a 42% drop from last October. If we only look at RESALE closings (the bulk of resales) there were only 4,609 in Oct 2022. This is a 49% drop year over year and the lowest amount of monthly resale closings since Jan 2009. Basically the amount of resale closing have been halved since last year at this time.