Phoenix saw new home listings surge during July, sending inventory to a watermark that hasn't been seen since 2014.
Phoenix saw a 26.8% year-over-year increase in the number of homes on the market, including attached and detached single-family homes and condos, equating to 5,145 new listings, according to Homes.com data.
"That marked the largest number of active listings for the month of July in over a decade and was nearly double the level seen in July 2023," said Connor Devereux, director of market analytics for Homes.com.
Phoenix's growth is slightly above the nationwide increase of 26% in July.
The influx of listings is further "evidence that a shift is underway in Phoenix to a more buyer-friendly housing market," said Connor Devereux, director of market analytics for Homes.com.
What's happening with prices?
Meanwhile, Phoenix's median sales price for homes only rose 1.4% to $448,000 from last July, lagging the rate of growth for inflation, according to Devereux.
Within that timeframe, Phoenix's median sales price actually decreased from December's mark of $455,000, according to Homes.com research.
"The increased supply of available homes provides potential Valley buyers with more options and negotiating power," Devereux said. "Home prices are now below the level seen entering the year, and Phoenix could remain an underperformer over the near term."
Neighborhoods with the biggest spikes
Camelback East Village saw Phoenix's largest year-over-year growth with 186 more active listings than last July.
Camelback East encompasses some of the most desirable villages within Phoenix that include Arcadia, Arcadia Lite and parts of the Piestewa Freeway corridor.
Examples of what's on the market in Camelback East include condos that go for below the median single-family home price; modest three to four-bedroom homes; as well as top-of-the-market options like a five-bedroom, five-bathroom home with a basketball court for $8 million and a secluded mountainside estate offered at $30 million.
Buckeye, one of the fastest-growing cities in the country, saw 160 more listings in July than the year-earlier period, while Surprise saw a positive change of 142 listings.
The two cities, located in Phoenix's West Valley, are two markets that are ripe for homebuilders and master-planned community developers.
In Buckeye, Rexco LLC recently introduced Grand View Arizona, a planned community spanning 2,200 acres and more than 5,000 homes. As it moves through the pipeline, another massive community is taking shape: Howard Hughes Corp.'s Teravalis project that will ultimately have 100,000 homes.
A shift toward a buyer's market?
The sentiment of a buyer-friendly market has been shared by local agents. Emily Tyson with Glendale-based W and Partners LLC previously told Homes.com that buyers have more leverage in negotiations today, while seller concessions are common.
Kristy DeWitz, an agent with My Home Group, also experienced instances of buyers having negotiating power. However, that's often for homes that have sat on the market.
"If a homeowner prices their home competitively ... and if the home is nice, fully updated with the new AC, the new roof, those ones are selling at full price with very minimal concessions to buyers," DeWitz said in an interview with Homes.com. "Where buyers are asking for the world is the listings that have 40-plus days on market and that maybe need some updates."
DeWitz said she's monitoring potential interest rate cuts from the Federal Reserve that could lead to lower mortgage rates and improved housing affordability. If that happens, DeWitz expects listings to continue to flood the market but with more buyer demand.