By Holly Henbest, Realtor

If you’re reading this, chances are you’re in an area with strong overall real estate performance. But what about the areas that aren’t faring as well?

Currently, the city with the weakest performance is Fountain Hills, followed by Buckeye, Paradise Valley, and Surprise. On the other hand, the strongest seller’s markets are Chandler in the lead, followed by Cave Creek, Phoenix, Avondale, and Peoria.

As of now, November data isn’t available, but October brought some encouraging trends:
• Closed transactions: 6,150, up 11.0% from October 2023 and 10.1% from September.
• New home sales: 1,502, up 1.4% from October 2023 and 4.2% from September.
• Resale transactions: 4,648, up 14.4% from October 2023 and 12.2% from September.
• Overall median sales price: $475,000, a 2.5% increase from October 2023 and 0.6% rise from September.
• New home median sales price: $525,506, up 3.3% from October 2023 and 1.3% from September.
• Resale median sales price: $455,000, up 2.4% from October 2023 and 1.1% from September.

It’s worth noting the ongoing shift in market dynamics. The new home market share has decreased compared to last year, while the resale market is gaining strength.

Looking at specific price ranges, activity has also shifted significantly:
• Sales under $300,000 have dropped 32%.
• Sales in the $1.5M–$2M range have increased by 20%.

The data shows that sales prices continue to experience modest increases, a trend worth emphasizing because many people believe prices are declining. That’s not the case. However, there has been an uptick in price reductions for homes currently on the market. For example, a home might be listed at $1,000,000, reduced to $975,000, and ultimately sell for $950,000. This can create the impression that prices are dropping, but in reality, the previous sale of that same home was likely below $950,000. In such cases, the selling price didn’t decrease—only the listing price did. This distinction is crucial. The reality is that sellers often start with an overly high list price, hoping to maximize their return, but eventually have to adjust it to attract the right buyers. When it’s time to sell, keep in mind that buyers are savvy and will analyze recent sales data. While prices have risen, the increases have been modest.

As the year winds down, many of you may be reflecting on your goals for 2025—and perhaps a move is among them. If so, now is the time to start planning. Reach out to your Realtor and Lender to set the stage for a smooth transition. Early preparation can make all the difference in starting the new year with a clear plan of action.

Have real estate questions? Give us a call at 480-266-8785 or [email protected].

*All data from the Cromford Report

Holly has been a Desert Ridge resident since 2000 and has been a Realtor since 2006. She is the leader of The Henbest Team with Realty One Group. Holly is ranked in the top ½ of 1 percent of Realtors in Arizona and is a certified luxury marketing expert. She has been ranked #24 in the Top 50 Realtors by the “Phoenix Business Journal” for the past several years and recognized by “So Scottsdale!” magazine as a Real Estate Superstar for 2019, 2020 and 2021. She’s also been the #1 ranked realtor at Realty One Group/North Scottsdale for the past several years. Learn more at henbest.com.