Local
Phoenix home prices hold near $450,000 as sales contracts plunge nationwide
Pending U.S. home sales dropped 7.3% in September to the lowest level since the National Association of Realtors began tracking the measure in 2001. In the Phoenix area, an agent said the median price remained about $450,000 even as higher mortgage rates weighed on affordability.
Pending home sales fell 7.3% from August to September, reaching their lowest level since the National Association of Realtors began tracking the index in 2001, the group said. Sales were down more than 11% from a year earlier nationwide and 15% across the West.
The decline came as mortgage rates rose. NAR Chief Economist Lawrence Yun said faster increases in borrowing costs weakened market conditions in September, adding that affordability is particularly sensitive to mortgage-rate changes even when jobs and incomes are growing.
In the greater Phoenix area, real estate agent Trevor Halpern said the slowdown in sales had not yet brought down the median home price, which he put at about $450,000. He said that figure was roughly unchanged from the previous month and the same time last year.
The average rate on a 30-year fixed mortgage was 7.40% for the week of Oct. 15, according to Freddie Mac. Yun said rates might be nearing a peak, but cautioned that higher energy costs and inflation remain uncertain factors.
Halpern said sellers may have to accept concessions, such as contributing money at closing to help buyers lower their mortgage rate and monthly payments. The figures point to a market where fewer buyers are moving forward even as Phoenix-area prices have so far remained steady—leaving affordability a challenge for households trying to buy.