R
esidential real estate activity in Phoenix has been impacted by high interest rates and a tight inventory since January. However, recent data suggests a positive shift.

    According to Phoenix REALTORS, residential deals closing in September increased 1.2% from August, marking the first uptick after several months of declines. "It's too early to call it a trend, but it's good to see the uptick," said Sheryl Bowden, Phoenix REALTORS board president. "With interest rates dropping and the peak sales season approaching, the market may be shifting."

    New listings have increased 13.9% since January compared to last year, while inventory jumped 42.8% in September compared to the same month in 2023. Year-to-date closings are up 3.2%, and homes are selling faster, with an average of 64 days on the market.

    The median sales price rose 4.2% to $475,000 year-to-date, but prices paid for housing continue to rise. Compared to other major markets, Greater Phoenix still offers bargains in single-family homes. Queen Creek saw its median sales price double from around $325,000 in 2020 to $649,000 through September 2024.

    "While individual cities show mixed results, the Greater Phoenix numbers are encouraging," said Bowden. "It's a positive sign for the market."