A Mounting Sense of Market Optimism In March

We recently recapped the first quarter 2023 figures, which paint a broad picture of the market’s status through the first three months of the year. On the heels of that quarterly review, the March numbers give a strong indication of what’s going on with a smaller snapshot of the market. These trends could have a major impact in the coming months. As with all our market summaries, the numbers and analysis below cover the desert’s resort cities. If there is a specific community or neighborhood you would like to learn more about, please reach out to your local Bennion Deville Homes real estate professional. We have the resources, market knowledge, and network to help you accomplish your real estate goals.

The final month of the opening quarter shows some encouraging signs for the market’s health as our peak sales season continues. After experiencing a sluggish January, and an uplifting February, March pushed on with increasing activity. The market welcomed more listings, saw more sales, and had more properties go under pending status than the prior month, with an uptick in overall inventory as well. Better news yet for sellers, the sale pace quickened and the listing discount worked slightly back in their favor. The months of inventory also went down thanks to all the market activity, giving home sellers an improved advantage in the market. Overall inventory levels are still below our historical average, but an increase in the number of homes is great news for homebuyers. Home prices are down slightly year-over-year, including the price per square foot, and a surge in homes coming to market offers optimism that homebuyers can work a better deal. Sellers still hold the cards, but as the extended sale pace indicates, buyers are willing to wait out the market, or a specific home, if the price isn’t right. Sellers who price and market their homes correctly can find a buyer quickly.

There were 684 homes sold in the month of March, a 37.5% decline from last year but a 33.9% increase over the prior month. The market welcomed 1,003 properties, a 14.7% dip compared to March 2022 but a 21.9% surge over February 2023. Additionally, 1,059 homes went into pending status, a 2.8% increase over last March and a 66.8% increase from February of this year. The median sale price of a home finished the month at $600,000, a slight 1.2% drop from last year but a 2.6% increase month-over-month. Additionally, the price per square foot ended the month at $399.00, a 6.3% drop year-over-year and a 0.5% dip from February. The average days on market, known as the sale pace, clocked in at 59 days, a 110.7% increase year-over-year (slower), and a 7.8% drop month-over-month (faster). The listing discount, calculated by dividing the sale price by the list price, was 97%, or indicating a 3% discount off the list price, a 4% decline from the same month last year, but a 1% increase month-over-month. Overall, the market has a 2.6-month supply of homes to meet demand, a 420% annual increase but a 25.7% monthly decrease. A 6-month supply of homes is considered a balanced market, indicating that sellers have an advantage over buyers in the current conditions.