85016 Phoenix, AZ Housing Market

Trend

Median listing prices have seen a notable decline, down 1.1% MoM and 9.6% YoY to $565,000. This downward trend is accompanied by an increase in active listings (up 4.2% YoY) and new listings (up 23.1% YoY), indicating more supply entering the market. Median days on market have extended significantly, rising 17.2% YoY to 72 days, suggesting properties are taking longer to sell. Although the pending ratio saw a slight increase of 2.9% YoY, the overall ratio of 0.31 suggests a more subdued pace of transactions relative to available inventory. The share of price-reduced listings is 25.4%, a decrease of 9.2% YoY, which may reflect a combination of proactive pricing adjustments by sellers and a more realistic price discovery in the market.

Negotiating leverage

The extended median days on market and the increased inventory suggest a shift in negotiating leverage. The higher growth in new listings compared to pending listings indicates a slower absorption of available properties. While the year-over-year decrease in price-reduced share might suggest some price discipline, the overall decline in median listing price and slower pace of transactions allow for buyers to exercise more deliberation.

Luxury segment

The significant spread between the median listing price ($565,000) and the average listing price ($953,837) to $388,837 indicates a notable presence of higher-end properties. Median price per square foot is $372, down 4.8% YoY. The average listing price has also experienced a YoY decline of 2.5%.