By Catherine Reagor | Arizona Republic
Several of metro Phoenix’s most affordable neighborhoods posted the biggest drops in home sales during the third quarter as interest rates kept climbing and knocking more buyers out of the market.
Most of Maryvale, parts of west and south Phoenix, southeast Mesa, southwest Chandler and El Mirage saw sales drop by 35% or more during the three months ending Sept. 30 compared to a year ago, according to the Arizona Regional Multiple Listing Service. The Valley’s housing market was already slowing during the summer of 2022 due to rapidly rising interest rates making buying unaffordable for many first-time buyers.
Overall, metro Phoenix home sales were down about 8% during this year’s third quarter, compared to the same quarter in 2022.
Prices also fell during this year’s third quarter in most of the neighborhoods with big drops in the number of sales.
Valley ZIP codes where home sales increased or decreased the most from the same time last year
Third quarter of 2022 to third quarter of 2023
Housing analysts say homebuyers looking for the most affordable homes are typically the first to be locked out of the market when mortgage rates climb.
“Interest rates are taking more of a toll on some Phoenix-area neighborhoods than others,” said Tina Tamboer, senior housing analyst with The Cromford Report.
The average 30-year mortgage rate climbed to 7.3% during the third quarter, the highest level since 1999. That compares to about 5.5% during the same timeframe in 2022. The higher interest rate adds about $600 a month to the payment on a $430,000 mortgage, the median Valley home price.
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