85022 Phoenix, AZ Housing Market

Trend

Median listing price has seen a notable year-over-year decrease of 20.5%, settling at $465,000, with a further month-over-month decline of 1.9%. This downward adjustment is also reflected in the median price per square foot, which decreased by 2.6% year-over-year to $293. While active listings remained relatively stable year-over-year (-0.7%), new listings experienced a significant 23.1% reduction. The pending ratio has decreased by 9.2% year-over-year to 0.35, indicating fewer properties going under contract relative to the active inventory. The share of price-reduced listings has risen by 10.6% year-over-year to 40.0%, suggesting a need for more aggressive pricing to attract offers. Median days on market remained relatively flat year-over-year at 54 days, not yet reflecting a significant slowdown in sales cycles despite other indicators.

Negotiating leverage

The current market dynamics in 85022 suggest increased negotiating leverage for those seeking to acquire property. The declining median listing price and the significant share of price-reduced listings indicate that pricing discipline is becoming more crucial for property owners. The reduced pending ratio points to a slower pace of transactions, lessening immediate inventory pressure and allowing for more deliberate evaluation of opportunities.

Luxury segment

In the luxury segment, a notable spread exists between the median listing price of $465,000 and the average listing price of $550,118. This suggests that the higher end of the market maintains a premium, although it is also subject to the overarching trend of a 19.8% year-over-year decrease in average listing price. The median price per square foot at $293 further underscores the pricing adjustments across the market spectrum.