The Phoenix real estate market is currently experiencing a bit of an identity crisis, and forecasting the near term direction of the market is proving difficult. Home price decreases have been much more tame than projected, and a significant reason for that is that inventory still remains surprisingly slow. Demand has decreased, but so has supply, and until that changes we are not projecting any large price decreases. In fact, after the holidays, price increases may actually occur. The complete, latest numbers are below.
The overall average home price in November compared to October decreased by 1.2%, moving from $546,908 to $540,348. The year over year increase over November 2021 was 3.9%. The average sale price as a percentage of the listing price was 97% (meaning on average homes are selling for 3% below the asking price), and the average days on the market was 59. The average price per square foot increased to $285.
Inventory decreased to 16,202 homes for sale, and the number of homes sold decreased to 4,520. 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 stayed very steady. The percentages of available homes are: $0-$250,000 (6% of the market), $250,000-$500,000 (53%), $500,000-$750,000 (23%), $750,000+ (18%).
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 November compared to October, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Decreased from $624,157 to $544,241 (12.9%)
Anthem - Decreased from $613,179 to $581,156 (5.3%)
Apache Junction - Increased from $304,753 to $304,939 (0.1%)
Avondale - Decreased from $420,553 to $410,673 (2.4%)
Buckeye - Decreased from $443,641 to $413,389 (6.9%)
Casa Grande - Decreased from $346,266 to $334,241 (3.5%)
Cave Creek - (Median Price) Increased from $718,000 to $730,000 (1.7%)
Chandler - Increased from $550,455 to $557,352 (1.3%)
Florence - Decreased from $330,340 to $322,931 (2.2%)
Fountain Hills (Median Price)- Increased from $668,000 to $700,000 (1.7%)
Gilbert - Decreased from $628,061 to $603,094 (3.9%)
Glendale - Decreased from $438,526 to $413,758 (5.6%)
Goodyear - Increased from $507,401 to $531,042 (4.7%)
Laveen - Decreased from $510,034 to $463,149 (9.2%)
Litchfield Park - Decreased from $562,876 to $484,972 (13.9%)
Maricopa - Decreased from $388,047 to $379,356 (2.3%)
Mesa - Decreased from $463,659 to $420,105 (9.4%)
Paradise Valley (median price) -Decreased from $2,725,000 to $2,675,000 (1.9%)
Peoria - Decreased from $532,355 to $501,305 (5.9%)
Phoenix - Decreased from $505,089 to $483,839 (4.3%)
Queen Creek - Decreased from $659,352 to $653,518 (0.9%)
San Tan Valley - Decreased from $480,942 to $421,095 (12.5%)
Scottsdale - Increased from $1,045,915, $1,113,103 (6.4%)
Sun City - Decreased from $298,134 to $284,300 (4.7%)
Sun City West - Increased from $422,147 to $431,296 (2.1%)
Surprise - Decreased from $445,340 to $441,154 (1.1%)
Tempe - Decreased from $471,490 to $464,268 (1.6%)
