Phoenix Real Estate Recap October 2022

By November 4, 2022Blog
Phoenix Real Estate Recap October 2022: 

As a successful real estate investor, you know how important it is to stay up-to-date with the latest market changes. Phoenix’s real estate market changes quickly, and we are here to share the top stories from October.

Here is the Phoenix Real Estate Recap October 2022

Market Shifts Towards Buyers

The latest S&P / Case-Shiller® Home Price Index® numbers were published last week. The new report covers home sales during the period June to August 2022.

Comparing with the previous month’s series we see the following changes:

  1. Cleveland -0.08%
  2. Miami -0.12%
  3. Charlotte -0.34%
  4. Atlanta -0.40%
  5. Chicago -0.48%
  6. Tampa -0.51%
  7. New York -0.54%
  8. Detroit -0.64%
  9. Minneapolis -0.95%
  10. Boston -1.21%
  11. La Vegas -1.33%
  12. Washington -1.53%
  13. Dallas -1.91%
  14. Portland -1.94%
  15. Phoenix -2.14%
  16. Los Angeles -2.25%
  17. Denver -2.29%
  18. San Diego -2.76%
  19. Seattle -3.87%
  20. San Francisco -4.28%

Phoenix has dropped from 9th to 15th place and no longer remains above the national average, which was -1.07%.  All 20 cities are in negative territory month to month although the Southeast remains relatively strong, along with parts of the North.

Comparing year over year, we see the following changes:

  1. Miami +28.6%
  2. Tampa +28.0%
  3. Charlotte +21.3%
  4. Dallas +20.2%
  5. Atlanta +20.1%
  6. Las Vegas +17.5%
  7. Phoenix +17.1%
  8. San Diego +12.7%
  9. New York +12.3%
  10. Los Angeles +12.1%
  11. Denver +12.0%
  12. Cleveland +11.5%
  13. Boston +11.4%
  14. Chicago +11.3%
  15. Seattle +9.9%
  16. Detroit +9.7%
  17. Portland +8.6%
  18. Minneapolis +7.6%
  19. Washington +7.4%
  20. San Francisco +5.6%

The average change nationwide was +13.0%, so Phoenix remained ahead of that measure.

Sales nationwide have slowed, and are leading to more buyer markets. According to the Cromford Report, 17 cities have seen a fall in their CMI over the past month. The deterioration in the market continues to accelerate with the average monthly change in CMI at -8.8%, worse than -6.8% last week.  11 cities are buyers’ markets, 3 are balanced and 3 are still sellers markets, though all 3 are deteriorating rapidly. Outside the Northeast Valley, Phoenix and Chandler are the strongest markets for sellers.

Phoenix #2 For Price Cuts

According to Zillow’s latest market report Phoenix ranks No. 2 in U.S. for the largest share of home price cuts. The typical U.S. home value is $358,283, up 12.9% from last year and nearly $110,000 (43.5%) above 2019. Of the 100 largest metros, exactly half saw home values rise from August to September.

 Metro Phoenix Stats:

  • Home Value Index: $451,313
  • Year-Over-Year Change: 8.1 %
  • Month-Over-Month Change: -2.3 %
  • Change in Typical Days on Market Since 2021: 24
  • Share of Listings With Home Price Cuts: 45%
  • Zillow Observed Rent Index: $1,951
  • Zillow Observed Rent Index Year-Over-Year Change: 6.6 %

3 Arizona Suburbs In Top 100 In The U.S.

In a new study, SmartAsset analyzed the affordability, livability, and job situation of nearly 500 suburbs across the nation. 3 somewhat surprising Arizona suburbs were ranked among the top 100  best suburbs in America.

3 Arizona suburbs in the top 100 in the U.S.

  • #35 Vali AZ (Close To Tuscon)
  • #63 Sahuarita, AZ (Close To Tuscon)
  • #79 Apache Junction, AZ

Out of the 109 suburbs that were analyzed in the West just five made the study’s overall top 100. Of these five suburbs, the highest ranking is Vail, Arizona (No. 35).Vail, AZ is within an hour of Tucson, AZ. The population is 14,099. It ranked No. 36 overall for affordability livability and job situations out of 494 places in the study.

More than a third of Western suburbs we considered have a median household income higher than $100,000, with many of those places located in California. Incomes are also growing in many Western suburbs. Over a five-year period starting in 2015, the median household income increased in Western suburbs by an average of 23.12%, but this figure varies wildly on location.

7 Affordable Areas in Metro Phoenix

Affordability is one of the top questions in today’s real estate market. As the market shifts for buyers, finding homes that are affordable is a top concern for many homebuyers.

Nationally, in the top 10 markets,  Phoenix is the seventh least expensive, which is great news for potential home buyers. Compared to other top markets, Phoenix has a lot to offer for jobs, affordability, and options. Additionally, Phoenix doesn’t fall far from the U.S. median sales price baseline.

Buyers looking for affordable homes in the metros can easily find one in one of the following:

  • Buckeye Median Home Sales Price: $442,950
  • Deer Valley Median Home Sales Price: $455,000
  • Garfield Median Home Sales Price: $435,000
  • Glendale Median Home Sales Price: $440,000
  • Mesa Median Home Sales Price: $460,000
  • Peoria Median Home Sales Price: $512,500
  • Tempe Median Home Sales Price: $452,500

According to the Cromford Report, as of September 10, 2022, the median sales price for a single-family home in Phoenix was $444,700, which is great news for today’s buyers.

Surprise #1 City For Attracting Young Homebuyers

The next big real estate hub might come as a surprise, but many young homebuyers are interested in this top city. In a new study, SmartAsset analyzed the 200 largest cities where more young people are buying homes and show that Surprise ranks No. 1. city with the youngest homebuyers.

Top 5 Cities For Young Homebuyers:

1 Surprise, AZ
2 Chesapeake, VA
3 Laredo, TX
4 Tacoma, WA
5 Port St. Lucie, FL (Tie)
5 Ontario, CA (Tie)

Surprise, Arizona ranks as the top place where more young residents are buying homes. Surprise has seen a 10-year increase of 15.88 percentage points in the homeownership rate among people younger than 35, the second-largest growth in the study. The total homeownership for that age cohort in 2021 was 57.60%, also the second-highest rate we analyzed for that metric.

Arizona still ranks well amongst younger homebuyers for jobs, affordability, and lifestyle. Additionally, Arizona has seen a flood of rental activity meaning real estate investors whether renting or flipping have better odds than other parts of the nation.

SUMMARY

In this month’s Phoenix Real Estate Recap October 2022, we covered the top news in Arizona. As the weather cooled so has the real estate market nationally over the past month. We have seen more markets shift towards buyers, price cuts, and a stall in listing and buying activity. Arizona still performed well despite the cooling market.

Phoenix Real Estate Recap October 2022: 

  • Market Shifts Towards Buyers
  • Phoenix #2 For Price Cuts
  • 3 Arizona Suburbs In Top 100 In The U.S.
  • 7 Affordable Areas in Metro Phoenix
  • Surprise #1 City For Attracting Young Homebuyers

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