Add my Contact
Phoenix Real Estate Market: Trends and Predictions for 2024

As we step into 2024, the Phoenix real estate market presents a landscape of evolving dynamics. Driven by various factors including inventory levels, mortgage rates, and economic conditions. The Phoenix market is poised for significant changes. This article delves into the latest trends and predictions, offering valuable insights for buyers and sellers in the Phoenix area.

Current Market Scenario

The Phoenix-Mesa-Chandler metro area has seen a notable decrease in active real estate listings, with a 16% drop over the past year. This decline, coupled with a dramatic 48% decrease in new listings, points to a tighter market with fewer options for buyers​​. These conditions have set the stage for increased competition and potential price increases in the near future.

Future Price Trends

Home prices in Phoenix are expected to rebound in 2024. The market has been experiencing a downturn in prices, but this is predicted to stabilize, and an upswing is anticipated. Zillow forecasts a 5.8% rise in median home values for the Phoenix-Mesa metropolitan area from May 2023 to May 2024, marking a positive shift from the previous year's 5.4% decline [SOURCE]​​.

Impact of Mortgage Rates

Rising mortgage rates have significantly influenced the market, contributing to the inventory decline. Homeowners who secured lower rates in the past few years are less inclined to sell, creating a challenge for new buyers as rates are expected to stabilize around the 6% mark towards the end of 2023​​​​ [SOURCE][SOURCE].

Market Reset and Buyer Opportunities

Experts predict a "reset" in the housing market, with prices expected to stabilize in 2023, creating more opportunities for buyers. A lack of inventory, coupled with a substantial number of first-time homebuyers, is expected to limit price declines. This resetting is anticipated to lead to more normal growth rates, similar to the stable period from 1987 to 1999​​ [SOURCE].

Sales Trends and New Construction

The sale of existing homes is forecast to fall to 4.2 million in 2023, a decrease from 5.0 million in 2022. However, new construction is expected to play a larger role in meeting inventory needs, offering potential incentives for buyers facing affordability challenges [SOURCE]​​.

Long-Term Growth Forecast

Looking further ahead, the greater Phoenix market is predicted to experience a significant growth by September 2024, with an expected value increase of 3.2%​​. This growth indicates a resilient market, bouncing back from current challenges.


The Phoenix real estate market in 2024 is expected to navigate through a period of adjustment before entering a phase of steady growth. For buyers and sellers, staying informed and adaptable to these changing conditions will be key to success in this dynamic market.

Scroll to Top