Metro Phoenix home prices flat in May, but sales up. What's in the forecast?

Metro Phoenix’s median home price was flat in May and is expected to dip in June.

The number of Valley homes sold was up in May from April but is also expected to fall in June. The number of listings climbed last month.

The median home price was $450,000 in May, the same as it was in April, according to the Arizona Regional Multiple Listing Service. The Phoenix-area median is expected to inch down to $445,000 in June.

“Sellers are nervous, and buyers are unenthusiastic,” said Mike Orr, founder of The Cromford Report, about the housing market.

Metro Phoenix home sales reached 7,386 in May, up from 6,859 in June. Total listings climbed by about 1,000 last month to 17,897.

Market slowing for summer despite lower interest rates

“Our housing market is transitioning from our peak season to our offseason,” said housing analyst Tom Ruff with The Information Market, a division of ARMLS. “It’s beginning to look like we’ll be in this rut for a while.”

Last month was the third worst May for Valley home sales since 1999.

Thirty-year mortgage rates have ticked down for the past month, according to Freddie Mac. The average is currently 6.86%. Still, sales are expected to fall to around 6,200 in June.

Seller incentives on the rise

What could also spur some buyers is more sellers offering concessions.

During June, 55% of Phoenix-area home sales sold with seller concessions, said Tina Tamboer, senior analyst with Cromford. That's up from 49% a year ago.

The median incentive is $9,400, up $1,200 from a year ago, according to Cromford.

Reach the reporter at catherine.reagor@arizonarepublic.com or 602-444-8040. Follow her on X, formerly Twitter: @CatherineReagor .

This article originally appeared on Arizona Republic: Metro Phoenix home prices flat in May, but sales up. What's in the forecast?