The state of the Phoenix area real estate market in January and early February is usually a result of how active, or not active, buyers were during the holidays. This year, although the number of home closings in January decreased from the month prior, prices still managed to increase as there were very few new listings that came on the market during that same time period. Low inventory continues to be a significant concern that doesn't appear to be easing any time soon. The complete, latest numbers are below.
The overall average home price in January compared to December increased by 2.3%, moving from $536,790 to $549,291. The year over year increase over January 2021 was 23%. The average sale price as a percentage of the listing price was 99.9% (meaning on average homes are selling right at the asking price), and the average days on the market was 35. The average price per square foot increased to $311.
Inventory decreased yet again to 4,369 homes for sale, and the number of homes sold also decreased to 6,687. This means that there is much less than a one month supply of homes on the market, which is an extremely strong seller's market.
The breakdown of home prices stayed exactly the same. The percentages of available homes are: $0-$150,000 (3% of the market), $150,000-$250,000 (4%), $250,000-$500,000 (44%), $500,000+ (49%).
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 January compared to December, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Increased from $550,207 to $571,072 (3.8%)
Anthem - Increased from $580,795 to $589,703 (1.5%)
Apache Junction - Increased from $322,496 to $323,803 (0.4%)
Avondale - Increased from $400,604 to $421,290 (5.1%)
Buckeye - Increased from $451,124 to $457,393 (1.4%)
Casa Grande - Decreased from $321,319 to $312,466 (2.8%)
Cave Creek - (Median Price) Increased from $695,000 to $785,000 (12.9%)
Chandler - Decreased from $552,080 to $546,966 (0.9%)
Florence - Increased from $344,667 to $357,081 (3.6%)
Fountain Hills (Median Price)- Increased from $596,500 to $632,500 (6.1%)
Gilbert - Decreased from $610,122 to $566,425 (7.2%)
Glendale - Increased from $415,894 to $436,200 (4.9%)
Goodyear - Decreased from $499,686 to $498,688 (0.2%)
Laveen - Increased from $451,995 to $454,596 (0.5%)
Litchfield Park - Decreased from $584,651 to $573,821 (1.9%)
Maricopa - Increased from $380,926 to $383,006 (0.5%)
Mesa - Increased from $437,783 to $445,452 (1.7%)
Paradise Valley (median price) -Increased from $2,490,000 to $2,530,000 (1.6%)
Peoria - Increased from $495,781 to $514,421 (3.7%)
Phoenix - Increased from $484,053 to $490,940 (1.4%)
Queen Creek - Decreased from $622,808 to $618,027 (0.8%)
San Tan Valley - Increased from $442,189 to $445,947 (0.8%)
Scottsdale - Increased from $1,008,495 to $1,015,115 (0.6%)
Sun City - Decreased from $344,113 to $342,278 (0.5%)
Sun City West - Decreased from $395,722 to $393,619 (0.5%)
Surprise - Decreased from $452,585 to $452,156 (0.1%)
Tempe - Decreased from $459,770 to $451,663 (1.8%)
