The median price of homes sold in Ahwatukee’s two ZIP codes fell in September compared to the same month last year as the valley-wide housing market continued to trend in favor of buyers.
But the average sales price of those homes was down just $85,048 from the September 2023 average, according to data released last week by Phoenix Realtors. Phoenix Realtors is Arizona’s premier organization of more than 11,000 real estate professionals with the most advanced tools in the industry.
In 85044, the 28 sales closed last month were down 9.7% year-over-year, and the median price of $478,500 was 9.3% below September 2023.
However, 85048 had 29 closed sales, an increase of 70.6% compared to a year ago. However, the median sales price for these was $608,000, which was 11.2% lower than in September 2023.
Last month, the average price of homes sold in Ahwatukee’s two ZIP codes changed in different directions.
The average price of homes sold in 85,044 last month was $637,898, up 7.3% from a year ago, while the average price in 85,048 was $629,882, down 24%, according to Phoenix Realtors data. Data for 85045 is not available.
Cheryl Bowden, president of Phoenix Realtors, said that Phoenix’s overall closed sales for the first nine months of 2024 “reverse the overall market upward trend, increasing by 7.1% compared to the first nine months of 2023. % decrease.”
“Through 2024, the median price was up 7.8% year-over-year,” Borden continued, adding that the Phoenix-wide median price of $485,00 was the highest in a decade.
Across Maricopa County, the median price of $500,000 and median price of $660,000 for the 3,466 homes sold last month were largely unchanged from September 2023.
While days on the market for the entire city of Phoenix decreased by an average of 5.2% to 55 days, homes sold last month in Ahwatukee remained on the market a little longer.
In 85044, homes sold are on the market an average of 58 days, an increase of 70.6 days from last year. 85048 has fallen 1.6% year-on-year during the 62 days of listing. The county-wide average was 64 days ≧
However, Phoenix Realtors said that despite some changes in buyers overall, sellers continued to get most of their asking prices across the Valley and in both 85044 and 85048.
Across the Phoenix metropolitan area, “ask price acceptance rates have remained stable throughout the year at over 98% of list price,” Borden said.
85045 sellers got 97.2%, down 2% from last year, while 85048 sellers got 98.6%, up slightly from last year.
Borden also said that while “the prices paid for housing continue to rise” across the Phoenix metropolitan area, “compared to other major markets, the Phoenix metropolitan area still offers great deals on single-family homes. ” he said.
Cromford Report, another leading analyst of the Maricopa and Pinal County housing market, took a slightly different view, saying last week:
“Buyers still gain bargaining power because supply is increasing faster than demand.”
Overall inventory in Maricopa County increased by 47.4% from September 2023 to 13,130 units. In 85044, inventory jumped 112% last month compared to September 2023 to 87 units. Similarly, the 95 homes available for sale in 85048 was more than double the ZIP code’s inventory a year ago.
The Cromford Report says: “Buyers will have more homes to choose from.” “Market trends in most regions continue to favor buyers over sellers.”
This 2,232 square foot home on South 39th Street in Mountain Park Ranch recently sold for $690,000. Built in 1987, this 4-bedroom, 2-bathroom home features an updated kitchen, family room opening to the backyard, large patio, and many other amenities.
(AFN limited)
Of the 17 Valley submarkets it monitors, only five are showing signs of a seller’s market, according to the Cromford Report. “Twelve cities are showing declines, including the two largest cities: Phoenix and Mesa,” the paper said.
The Cromford report also noted that “the majority of people thought mortgage rates would fall after the Federal Reserve cut its benchmark interest rate three weeks ago.” Most of them are wrong so far. ”
Nationally, various experts pointed out last week that “the rising momentum of mortgage interest rates is gaining further momentum.”
Freddie Mac officials said on Oct. 9 that the average interest rate on 30-year fixed-rate mortgages was 6.32%, up from 6.12% the previous week and the largest single-week increase since April. reported.
Sam Cater, Freddie Mac’s chief economist, said this was due to the September jobs report being “better than expected.”
But experts also noted that while borrowers may not have the lowest interest rate of the month, they are still doing better than buyers, whose average interest rate on a 30-year fixed-rate mortgage last year was 7.57%.
15-year loans also rose from 5.25% to 5.41%. At this time a year ago, it was 6.89%.
“However, it is important to remember that the rise in interest rates is primarily due to changes in expectations and not due to the underlying economy, which has been strong through most of this year,” Carter said.
“Rising interest rates will make home affordability more difficult, but demonstrate the strength of the economy to continue supporting the housing market recovery.”
But how long can lenders wait for the housing market to recover?
“Most of the lenders that we’ve seen over the past few years have realized that this new market opportunity will come later,” Jason Obradovic, chief investment officer at New American Funding, told National Mortgage Professional. I think we have been incurring losses under the assumption that we will be able to make up for the losses once they arrive.”
“I would like to know how long a particular lender is willing to tolerate losses, because that seems to be what a lot of people in the industry are modeled after.”
