The Phoenix real estate market continued to be unpredictable in December, with sales continuing at their lower pace, but also new listings staying at their slower pace as well, which means inventory continues to stay steady instead of increasing. It's unclear why more new listings are not becoming available, but unless that trend reverses, I foresee potential home price increases this spring. The complete, latest numbers are below.
The overall average home price in December compared to November decreased by 3.1%, moving from $540,348 to $523,760. The year over year decrease over December 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 67. The average price per square foot increased to $384.
Inventory decreased to 14,856 homes for sale, and the number of homes sold increased to 4,774. 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 December compared to November, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Decreased from $544,241 to $507,942 (6.7%)
Anthem - Decreased from $581,156 to $547,750 (5.8%)
Apache Junction - Increased from $304,939 to $336,236 (10.2%)
Avondale - Increased from $410,673 to $427,173 (4.1%)
Buckeye - Decreased from $413,389 to $412,740 (0.2%)
Casa Grande - Decreased from $334,241 to $311,127 (6.9%)
Cave Creek - (Median Price) Increased from $730,000 to $985,000 (34.9%)
Chandler - Decreased from $557,352 to $544,372 (2.4%)
Florence - Decreased from $322,931 to $322,149 (0.3%)
Fountain Hills (Median Price)- Decreased from $700,000 to $557,000 (20.5%)
Gilbert - Decreased from $603,094 to $601,979 (0.2%)
Glendale - Increased from $413,758 to $424,830 (2.7%)
Goodyear - Decreased from $531,042 to $493,705 (7.1%)
Laveen - Decreased from $463,149 to $460,461 (0.6%)
Litchfield Park - Increased from $484,972 to $520,045 (7.2%)
Maricopa - Decreased from $379,356 to $358,560 (5.5%)
Mesa - Increased from $420,105 to $426,427 (1.5%)
Paradise Valley (median price) -Increased from $2,675,000 to $2,715,000 (1.5%)
Peoria - Decreased from $501,305 to $495,251 (1.3%)
Phoenix - Increased from $483,839 to $486,204 (0.4%)
Queen Creek - Increased from $653,518 to $655,289 (0.3%)
San Tan Valley - Decreased from $421,095 to $405,469 (3.8%)
Scottsdale - Decreased from $1,113,103 to $1,054,052 (5.3%)
Sun City - Increased from $284,300 to $302,395 (6.4%)
Sun City West - Decreased from $431,296 to $403,007 (6.6%)
Surprise - Decreased from $441,154 to $436,648 (1.1%)
Tempe - Decreased from $464,268 to $457,552 (1.5%)
