Listing prices for September in Arizona have dropped again down to a median of $477,500. This is down from August by 2.45%. This is above the national median of $427,250. This is the third straight month where listing prices have dropped, all the way from $524,950 in June.
The listing price is still up 3.8% year over year. With an inflation rate of 8.2% nationally, with Arizona CPI for August right at 13%, this means that real estate is really lagging. This is probably due to the 30-year mortgage rates at 6.6% on average. Arizona Household income has also dropped since 2019 5.4%, and an average rent of $1887 per month.
It seems as though while prices are coming down it is still very expensive, and while incomes are dropping and average rent still rising, it makes it very hard for people to purchase a single family home, but also becoming unaffordable to rent as well. When interest rates begin to lower, I believe prices will begin to rise again, but until then it seems as though the they will continue dropping slowly until sellers can meet in the middle with buyers.