The Phoenix real estate market responded in January to the continued lack of new housing inventory, showing an unexpected increase in the average home sale price despite the total number of home sales being lower. Until seller's get motivated to sell, it is unlikely that prices are going to experience any large price declines in the foreseeable future, and in fact, the market may continue to experience price increases, albeit at a more modest rate than what we saw in early 2022. The complete, latest numbers are below.
The overall average home price in January compared to December increased by 0.7%, moving from $523,760 to $527,709. The year over year decrease over January 2022 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 78. The average price per square foot increased to $259.
Inventory decreased to 13,762 homes for sale, and the number of homes sold increased to 4,045. 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 homes priced between $250,000 and $500,000 experiencing the biggest decline in inventory. The percentages of available homes are: $0-$250,000 (7% of the market), $250,000-$500,000 (48%), $500,000-$750,000 (23%), $750,000+ (22%).
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 January compared to December, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Increased from $507,942 to $526,051 (3.6%)
Anthem - Increased from $547,750 to $596,426(8.8%)
Apache Junction - Decreased from $336,236 to $279,904 (16.8%)
Avondale - Decreased from $427,173 to $403,655 (5.5%)
Buckeye - Increased from $412,740 to $426,250 (3.3%)
Casa Grande - Decreased from $311,127 to $309,812 (0.4%)
Cave Creek - (Median Price) Decreased from $985,000 to $720,000 (27%)
Chandler - Decreased from $544,372 to $536,008 (1.6%)
Florence - Decreased from $322,149 to $316,711 (1.7%)
Fountain Hills (Median Price)- Decreased from $557,000 to $525,000 (5.8%)
Gilbert - Decreased from $601,979 to $578,774 (3.9%)
Glendale - Decreased from $424,830 to $415,215 (2.3%)
Goodyear - Increased from $493,705 to $497,648 (0.7%)
Laveen - Decreased from $460,461 to $430,439 (6.6%)
Litchfield Park - Decreased from $520,045 to $479.998 (7.7%)
Maricopa - Increased from $358,560 to $359.309 (0.2%)
Mesa - Decreased from $426,427 to $425,175 (0.3%)
Paradise Valley (median price) -Increased from $2,715,000 to $3,575,000 (32%)
Peoria - Decreased from $495,251 to $474,897 (4.2%)
Phoenix - Decreased from $486,204 to $474,224 (2.5%)
Queen Creek - Increased from $655,289 to $711,482 (8.6%)
San Tan Valley - Increased from $405,469 to $422,041 (4.1%)
Scottsdale - Decreased from $1,054,052 to $966,919 (8.3%)
Sun City - Decreased from $302,395 to $296,648 (2.1%)
Sun City West - Decreased from $403,007 to $391,583 (2.9%)
Surprise - Increased from $436,648 to $445,938 (2.1%)
Tempe - Decreased from $457,552 to $449,203 (1.9%)
