Higher inventory, rates may be cooling market | Business

In May, 357 MLS listing sales closed in Glendale and 333 in Peoria.

Today there are 385 active and available listings (not counting properties already under contract or pending close of escrow) in MLS in Glendale and 385 in Peoria.

We finally have over one month’s housing inventory, up from 63% last month in Glendale and up from 83% last month in Peoria. Maricopa County’s active inventory today is 122% of May’s sales. According to the Cromford Report, this is the highest number of days’ worth of inventory since June 30.

Also, according to The Cromford Report, the average number of days a listing spent on the market in Maricopa County still decreased from 25.3 days in April to 24.06 days in May, and 56% of sales closed in Maricopa County during May sold for over the listing price, down slightly from 57% of April’s sales. The closing price cost per square foot continued to increase from 317.78 in April to 318.46 in May.

According to Freddie Mac, as of June 9, national mortgage rates reported U.S. weekly averages of 5.23% for a 30-year fixed, 4.38% for a 15-year fixed, and 4.12% for a five-year ARM.

Having a slightly smaller buyer pool due to rising rates and more homes to choose from due to a larger listing inventory has affected the showing numbers as well. According to ShowingTime, the platform Realtors use to schedule most of the MLS showings, the number of showings per listing in Peoria and Glendale has seen an average drop of about 30%, with a few exceptions.

Peoria listings over $900,000 saw an 80% drop in the number of showings per listing, and Glendale a 70% drop in the $300,000-$399,999 range. Not all showings are scheduled through ShowingTime, so actual numbers are typically higher. 

According to MLS statistics, 69.5% of Maricopa County buyers financed their home purchase in May, while the rest paid cash. The percentage of financed purchases continues to decrease, as interest rates change and homebuyers using financing continue to compete with cash-paying investors.

Buyers using a conventional mortgage to buy a three-bedroom detached house with two bathrooms paid a minimum of $221,000 in Maricopa County — $330,000 in Glendale and $375,000 in Peoria. Conventional financing made up 78.3% of May’s financed sales.

In May, FHA buyers in Maricopa County paid a minimum of $385,000 for a detached home with three bedrooms and two baths.

Peoria FHA buyers paid a minimum of $395,000, and Glendale FHA buyers paid $365,000. FHA buyers made up 6.9% of financed purchases in May.

Maricopa County VA buyers making a similar purchase paid a minimum of $280,000, $435,000 in Peoria, and $397,000 in Glendale. Home sales financed with VA loans comprised 5.9% of May’s financed sales.  

The remaining financed transactions used other financing methods. For the week ending May 29, 3% of Maricopa County sellers contributed to their buyer’s closing cost, and this number has been holding steady over the last few months.

The highest-priced home sale in Maricopa County last month was in Paradise Valley for $11 million. The highest-priced home sales in Peoria and Glendale were $2.1 million and $2.3 million and $2.3 million, respectively. 

If your finances have cooled, please know that you are not alone. Homeowners, tenants and landlords are encouraged to reach out to the Department of Housing and Urban Development (HUD)’s housing counseling program at 1-800-569-4287 or go to consumerfinance.gov/housing to find the assistance you need.



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