The Phoenix real estate market, for the third straight month, saw inventories rise and bring additional balance to the market. One key difference this month however is that the effect of the additional inventory finally reflected in home prices. Many industry experts still feel strongly that inventory is too low, and that builders aren't building enough, but the recent increases in interest rates have been sufficient to stop, at least temporarily, the rampant home price increases of the last two years. The complete, latest numbers are below.
The overall average home price in July compared to June decreased by 7.2%, moving from $602,553 to $559,588. The year over year increase over July 2021 was 11.1%. The average sale price as a percentage of the listing price was 99% (meaning on average homes are selling for 1% below the asking price), and the average days on the market was 31. The average price per square foot decreased to $286.
Inventory increased to 16,610 homes for sale, and the number of homes sold decreased to 5,633. This means that there is a three month supply of homes on the market, which is considered the start of a balanced market.
The breakdown of home prices experienced some changes, with inventory on the market between $250,000 and $500,000 showing the largest increase for the second straight month. The percentages of available homes are: $0-$250,000 (3% of the market), $250,000-$500,000 (47%), $500,000-$750,000 (29%), $750,000+ (21%).
Foreclosures and short sales continue to stay at their record low rates of 0.1% of the market and 0.1% 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 July compared to June, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Decreased from $615,648 to $566,839 (7.1%)
Anthem - Increased from $663,870 to $670,069 (0.9%)
Apache Junction - Decreased from $430,202 to $352,813 (18.1%)
Avondale - Decreased from $461,658 to $435,425 (5.7%)
Buckeye - Decreased from $486,263 to $465,491 (4.3%)
Casa Grande - Increased from $364,766 to $380,061 (4.2%)
Cave Creek - (Median Price) Decreased from $821,000 to $796,000 (3.1%)
Chandler - Decreased from $610,311 to $582,516 (4.5%)
Florence - Increased from $367,075 to $398,128 (8.5%)
Fountain Hills (Median Price)- Decreased from $680,000 to $595,000 (12.5%)
Gilbert - Decreased from $703,316 to $688,859 (2.1%)
Glendale - Decreased from $488,773 to $462,102 (5.5%)
Goodyear - Decreased from $550,356 to $537,461 (2.4%)
Laveen - Decreased from $523,576 to $493,766 (5.7%)
Litchfield Park - Increased from $637,997 to $644,437 (1.0%)
Maricopa - Increased from $430,404 to $430,556 (0.1%)
Mesa - Decreased from $481,215 to $458,496 (4.7%)
Paradise Valley (median price) -Increased from $3,100,000 to $3,350,000 (8.1%)
Peoria - Decreased from $566,456 to $545,528 (3.7%)
Phoenix - Decreased from $547,070 to $503,315 (8.1%)
Queen Creek - Decreased from $748,535 to $729,306 (2.6%)
San Tan Valley - Decreased from $484,491 to $481,071 (0.8%)
Scottsdale - Decreased from $1,176,131 to $1,074,661 (8.7%)
Sun City - Increased from $329,686 to $330,584 (0.3%)
Sun City West - Decreased from $425,314 to $422,002 (0.8%)
Surprise - Decreased from $507,312 to $470,316 (7.3%)
Tempe - Decreased from $530,336 to $488,580 (7.9%)
