After a slow start in 2019, home sales and their corollary “listings under contract” continue their rise into early April, now slightly exceeding the sales and listings under contract for this same period in 2018. Most of the improvement in sales and buyer interest can be attributed to our continually falling interest rates. Interest rates have declined throughout 2019 since peaking in early November of last year at 4.94% (Freddie Mac). As of April, rates are down almost a full point from that high, to 4.08% (Freddie Mac, April 4, 2019).
The monthly median sales price for greater Phoenix is up 4.6% year over year to $266,000, so buyers and sellers should still expect a relatively competitive market. However, since much of what is driving our current market can be attributed to falling interest rates, buyers and sellers would be wise to keep an eye on rate changes (and their drivers), as any significant change in rates and rate direction would likely directly and quickly impact pricing and sales.
In summary, while 2019 is shaping up to be another healthy year for Phoenix real estate, sellers and buyers are encouraged to make smart choices in both pricing and offers as today’s buyers and sellers are very value sensitive.