Phoenix, Arizona market sees sharp increase in homes for sale

The available housing stock is increasing in the Phoenix metro area at rates not seen by the rest of the country.

From June 2021 to June 2022, Phoenix saw the biggest jump in new listings out of any market in the country.

In June 2022, Phoenix had 13,923 new listings on the market, according to data released by RE/MAX. It was a significant increase over the 10,382 that were added to the market in the Phoenix area in June 2021. It marked a 34.1% increase. Phoenix was the only market in the country with an increase above 23%.

“The Phoenix metro area is in the process of a market shift from a red-hot market to more of a balanced market,” RE/MAX Professionals Sales Associate/Owner Nate Martinez said in a press release. “With inventory increasing, we’re seeing more opportunities for buyers, a leveling of home prices, and a reduction in homes selling with multiple offers.”

As the housing supply has gone up in Phoenix, people are now less likely to get above the asking price for their homes. In June 2021, the average seller in Phoenix was likely to receive 101.8% of their asking price. However, in June 2022, that figure dropped to 99.% percent -- a 1.9% drop. That marked the fifth-largest drop out of any housing market in the country.

“The market is moving toward greater balance, especially with inventory gains and the slowing of price appreciation. The past few years have been one of the most competitive times ever for buyers – and we’re finally seeing conditions ease up,” Nick Bailey, President and CEO of RE/MAX, said in a press release. “It’s due partly to the rise in interest rates – although buyers are also finding solutions in ARMs, FHA products and other financing – but even more significant is the increase in listings after several years of instant sales and low inventory. Markets like Nashville and Phoenix saw an increase in new listings of over 20 percent last month, bringing new options for buyers who may have sidelined themselves in the frenzy of last year.”

And while there is more real estate activity in Phoenix this year than last year, that’s not what’s happening in all parts of the country. Places like Miami, Florida (-35.1%); San Diego, California (-33.1%); Coeur d’Alene, Idaho (-32.2%); San Francisco, California (-29.1%), and Salt Lake City, Utah (-27.1%) saw large drops in the number of real estate transactions that took place in their respective markets from June 2021 to June 2022.