There is one word that perfectly sums up the Phoenix real estate market in the month of July. Confusing. On one hand, prices retreated after increasing for 6 straight months. That said, for the first time in 6 months, the year over year (July 2023 vs July 2022) prices increased. Also, the available inventory inched lower, even as the total number of home sales decreased. Basically, there were fewer buyers AND sellers in the market last month, and as a result, the market continues to stay locked up. High interest rates are almost certainly to blame, as sellers are hesitant to trade in their low rate for a higher rate. More than ever, in the last 3 to 4 years, we have seen both buyers and sellers trying to time the market, which has so far proved to be a fruitless effort. In a historical context, trying to time the market has almost always been difficult if not impossible to do. If you are a long term follower of this monthly report, than you know we do not make recommendations, but rather report data and market conditions. That said, we feel strongly that it's never the perfect time to buy or sell a home, but it's always the right time to buy the perfect home, meaning, if the home is right for you, it's never the wrong time to buy it. The complete, latest numbers are below.
The overall average home price in July compared to June decreased by 4.4%, moving from $588,997 to $563,205. The year over year increase over July 2022 was 0.7%. 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 57. The average price per square foot increased to $310.
Inventory decreased to 9,591 homes for sale, and the number of homes sold decreased to 5,420. This means that there is less than a two month supply of homes on the market, which is a seller's market.
The breakdown of home prices stayed relatively the same. The percentages of available homes are: $0-$250,000 (7% of the market), $250,000-$500,000 (39%), $500,000-$750,000 (27%), $750,000+ (27%).
Foreclosures and short sales continue to stay at their record low rates of 0.2% 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 - Increased from $522,768 to $611,938 (17.1%)
Anthem - Increased from $608,648 to $736,534 (21.1%)
Apache Junction - Decreased from $357,029 to $309,174 (13.5%)
Avondale - Increased from $430,261 to $430,770 (0.1%)
Buckeye - Increased from $416,219 to $456,941 (9.8%)
Casa Grande - Increased from $322,458 to $356,195 (10.5%)
Cave Creek - (Median Price) Decreased from $827,000 to $774,900 (6.3%)
Chandler - Increased from $561,218 to $602,571 (7.4%)
Florence - Decreased from $358,340 to $337,214 (5.9%)
Fountain Hills (Median Price)- Increased from $625,000 to $650,000 (4.0%)
Gilbert - Increased from $629,043 to $633,716 (0.7%)
Glendale - Decreased from $449,451 to $440,799 (1.9%)
Goodyear - Decreased from $531,443 to $495,572 (6.8%)
Laveen - Increased from $466,061 to $487,369 (4.6%)
Litchfield Park - Increased from $531,431 to $552,518 (3.9%)
Maricopa - Increased from $378,504 to $379,353 (0.2%)
Mesa - Decreased from $465,385 to $462,721 (0.6%)
Paradise Valley (median price) -Decreased from $3,050,000 to $2,950,000 (3.3%)
Peoria - Decreased from $581,662 to $498,902 (14.3%)
Phoenix - Increased from $509,634 to $526,313 (3.3%)
Queen Creek - Increased from $695,115 to $738,517 (6.2%)
San Tan Valley - Decreased from $447,114 to $433,309 (3.1%)
Scottsdale - Decreased from $1,172,576 to $1,080,009 (7.9%)
Sun City - Increased from $286,257 to $289,123 (1.1%)
Sun City West - Increased from $390,243 to $403,196 (3.3%)
Surprise - Decreased from $453,221 to $443,115 (2.3%)
Tempe - Increased from $481,747 to $483,585 (0.4%)
