Price increases in the Phoenix market came storming back last month after a brief pause in February. The volume of home sales was the highest we have seen in the past year. While there may be multiple factors for the price increases and rapid sales, the most likely reason is the rising interest rate, which is expected to still go higher in the next 12 months.
The overall average home price in March increased by 2.9%, moving from $312,303 to $321,218. The increase over March 2017 was 9.6%. The average price per square foot decreased to $158.
Inventory stayed roughly the same at 15,146 homes for sale, but the number of homes sold increased substantially to 9,105. The numbers indicate that there is just a one and a half month supply of homes on the market, which is a seller's market.
The breakdown of homes currently available stayed steady after experiencing some big changes the month prior. The percentages of available homes are: $0-$150,000 (5% of the market), $150,000-$250,000 (19%), $250,000-$500,000 (41%), $500,000+ ($35%).
Foreclosures and short sales continue to stay at their record low rates of 0.7% of the market and 0.4% respectively. They continue to be an insignificant portion of the market.
Here is a breakdown of the market changes, based on average sale price in March compared to February, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Decreased from $348,924 to $346,379 (0.7%)
Anthem - Increased from $341,700 to $371,305(8.7%)
Avondale - Increased from $226,657 to $231,085 (1.9%)
Buckeye - Decreased from $243,768 to $237,070 (2.8%)
Cave Creek - (Median Price) Increased from $420,350 to $462,500 (10.0%)
Chandler - Increased from $329,592 to $335,020 (1.6%)
Fountain Hills (Median Price)- Increased from $315,000 to $405,000 (28.6%)
Gilbert - Decreased from $350,098 to $348,595 (0.4%)
Glendale - Increased from $235,756 to $245,175 (4.0%)
Goodyear - Increased from $295,344 to $298,060 (0.9%)
Maricopa - Increased from $198,514 to $202,798 (2.1%)
Mesa - Increased from $250,905 to $260,253 (3.7%)
Paradise Valley (median price) -Increased from $1,375,000 to $1,421,000 (3.3%)
Peoria - Increased from $307,669 to $320,394 (4.1%)
Phoenix - Increased from $278,475 to $292,253 (4.9%)
Queen Creek - Increased from $303,573 to $316,133 (4.1%)
San Tan Valley - Decreased from $235,383 to $226,510 (3.8%)
Scottsdale - Increased from $563,316 to $575,317 (2.1%)
Sun City - Increased from $207,248 to $211,426 (2.0%)
Sun City West - Increased from $236,861 to $261,808 to $258,465 (1.3%)
Surprise - Decreased from $260,340 to $246,424 (5.4%)
Tempe - Decreased from $304,307 to $291,415 (4.3%)
