Phoenix home sale time on market sees 2nd-biggest decrease in the U.S.

Sellers became more eager this January as new data indicated they’re getting ready to sell, if not already there. The number of homes actively for sale was notably higher compared to last year, growing by 7.9%, according to the Realtor.com January Housing Report released today. With the rise in inventory, median listing prices remained relatively stable, experiencing a growth of 1.4% compared to the same time last year, while time spent on market dropped to more than two weeks shorter than pre-pandemic levels. In the Metro Phoenix housing industry, time on market dropped 14 days compared with 2023, good for the second-biggest drop in the nation.

“We are seeing increases in inventory and, importantly, gains in newly listed homes for sale indicating sellers are more ready to make moves. Time on market fell, signaling that buyers are ready to make offers on these new options,” said Danielle Hale, Chief Economist of Realtor.com^®. “While the drop in mortgage rates since last fall has helped boost buyer purchasing power, rates may not fall as quickly in the months ahead, and the anticipated improvement in affordability may be more uneven.”

New Listings Increase

In January, more than half of the 50 metros included in the analysis saw new listings increase over the previous year, with some of the largest growth happening in Denver (+21.3%), Seattle (+20.6%) and Miami (+20.2%). On the flip side, there were places that also saw declines in new listings including Chicago (-16.4%), New Orleans (-14.7%), and Philadelphia (-12.9%).

Grab ’em While They’re Hot

Compared to January 2023, the typical home spent four less days on the market. In some spots, the time spent on the market decreased even more with Las Vegas (-19 days), Phoenix (-14 days) and San Francisco (-13 days) seeing the most decline. Other areas saw an increase in time on market including Indianapolis (+6 days), New Orleans (+4 days), and Birmingham, Ala. (+3 days). Only a handful of markets saw an increase over the typical 2017-2019 pre-pandemic time on market. These include the major west coast tech hub of San Francisco (+9 days), as well as Seattle (+9 days), Denver (+7 days), Portland, Ore. (+4 days), Austin, Texas (+3 days), San Antonio (+3 days), Los Angeles (+3 days) and San Jose, Calif. (+1 day).

Listing Price Inches Higher

Buyers are looking at slight price increases and higher mortgage rates compared to last January. The cost of financing the typical home, assuming a 20% down payment, increased by roughly $108 (5.4%) per month compared to a year ago. With this increase, the required household income to purchase the median-priced home went up by $4,300 to $84,000, before accounting for the cost of tax and insurance. However, as interest rates are falling and listing prices growth has remained muted, the increase in the monthly cost to purchase a home has slowed, down from 6.1% year-over-year last month to January’s increase of 5.4%.

Additional details and full analysis of the market inventory levels, price fluctuations and stabilization, as well as days on market tallies can be found in the Realtor.com^® January Monthly Housing Report.