Continuing on with the recent trend of alternating months of price increases and decreases, the Phoenix area home market turned in another impressive performance in December with one of the larger home price increases of the year. The reason continues to be a simple one. A severe lack of inventory continues to drive price increases as builders continue to do their best to meet the surging housing demand in the area. The complete, latest numbers are below.
The overall average home price in December compared to November increased by 3.2%, moving from $519,752 to $536,790. The year over year increase over December 2020 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 32. The average price per square foot increased to $305.
Inventory decreased substantially yet again to 4,833 homes for sale, and the number of homes sold increased slightly to 8,704. 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 almost 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 December compared to November, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Increased from $536,195 to $550,207 (2.6%)
Anthem - Increased from $550,091 to $580,795 (5.6%)
Apache Junction - Decreased from $341,408 to $322,496 (5.5%)
Avondale - Increased from $399,705 to $400,604 (0.2%)
Buckeye - Increased from $429,467 to $451,124 (5.1%)
Casa Grande - Increased from $308,344 to $321,319 (4.2%)
Cave Creek - (Median Price) Decreased from $699,500 to $695,000 (0.7%)
Chandler - Increased from $528,498 to $552,080 (4.5%)
Florence - Increased from $304,179 to $344,667 (13.3%)
Fountain Hills (Median Price)- Increased from $574,000 to $596,500 (3.9%)
Gilbert - Increased from $609,329 to $610,122 (0.1%)
Glendale - Increased from $415,736 to $415,894 (0.1%)
Goodyear - Decreased from $504,456 to $499,686 (0.9%)
Laveen - Decreased from $468,214 to $451,995 (3.5%)
Litchfield Park - Decreased from $640,543 to $584,651 (8.8%)
Maricopa - Increased from $375,776 to $380,926 (1.3%)
Mesa - Increased from $411,491 to $437,783 (6.4%)
Paradise Valley (median price) -Increased from $2,150,000 to $2,490,000 (15.8%)
Peoria - Increased from $485,564 to $495,781 (2.1%)
Phoenix - Increased from $471,483 to $484,053 (2.7%)
Queen Creek - Increased from $601,702 to $622,808 (3.5%)
San Tan Valley - Increased from $438,994 to $442,189 (0.7%)
Scottsdale - Increased from $882,940 to $1,008,495 (14.2%)
Sun City - Increased from $340,748 to $344,113(0.9%)
Sun City West - Increased from $399,346 to $412,555 (3.3%)
Surprise - Increased from $432,858 to $452,585 (4.6%)
Tempe - Increased from $434,958 to $459,770 (5.7%)
