Prior to this month we had predicted that the stronger than normal holiday months at the end of 2016 would lead to a good beginning for real estate in 2017. That came to fruition, and prices experienced a nice increase.
The overall average home price in January increased by 1.2%, moving from $284,987 to $288,418. The increase over January 2016 was 5.5%. The average price per square foot increased to $168.
Inventory increased slightly to 18,207 homes for sale, and the number of sold homes decreased to 5,710. This indicates that there is a 3 month supply of homes on the market, which is the definition of a balanced market between buyers and sellers.
The breakdown of homes currently available stayed relatively even this month. The percentages of available homes are: $0-$150,000 (8% of the market), $150,000-$250,000 (27%), $250,000-$500,000 (38%), $500,000+ ($27%).
Foreclosures and short sales continue to stay at their record low rates of 1.1% of the market and 0.8% 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 Jnauary compared to December, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Decreased from $306,603 to $299,888 (2.2%)
Anthem - Increased from $286,392 to $332,191 (16%)
Avondale - Increased from $205,170 to $207,830 (1.3%)
Cave Creek - (Median Price) Decreased from $430,000 to $400,000 (7%)
Chandler - Decreased from $319,321 to $300,775 (5.9%)
Fountain Hills (Median Price)- Increased from $300,000 to $343,500 (14.5%)
Gilbert - Decreased from $324,132 to $314,110 (3.2%)
Glendale - Increased from $225,124 to $227,237 (0.9%)
Goodyear - Increased from $260,368 to $268,014 (3.2%)
Maricopa - Decreased from $183,195 to $180,780 (1.3%)
Mesa - Increased from $225,079 to $233,280 (3.6%)
Paradise Valley (median price) -Increased from $1,050,000 to $1,120,000 (6.7%)
Peoria - Increased from $270,798 to $289,150 (6.8%)
Phoenix - Decreased from $256,900 to $256,379 (0.2%)
Queen Creek - Increased from $281,179 to $293,301 (4.3%)
San Tan Valley - Decreased from $205,433 to $195,095 (5.1%)
Scottsdale - Increased from $509,934 to $529,398 (3.8%)
Sun City - Decreased from $187,093 to $185,548 (0.8%)
Sun City West - Decreased from $237,257 to $226,704 (4.5%)
Surprise - Decreased from $232,305 to $230,599 (0.8%)
Tempe - Increased from $262,986 to $282,572 (7.4%)
