The Phoenix real estate market has recovered nearly all of the late 2022 price losses over the last 6 month as buyers continue to adjust to higher interest rates. Purchase volume has stayed steady in relation to the available inventory, and buyers have shown they are willing to move forward, even with higher rates, with the hopes that they will be able to refinance in the near future. Low inventory continues to be problematic and that issue appears to be here to stay for the foreseeable future. Now that interest rates appear to have stabilized for the most part, our projection is that we will continue to see price increases going forward unless other economic conditions change. The complete, latest numbers are below.
The overall average home price in June compared to May increased by 2.3%, moving from $574,357 to $588,997. The year over year decrease over June 2022 was 2.2%. The average sale price as a percentage of the listing price was 99% (meaning on average homes are selling for 1% below the asking price), and the average days on the market was 63. The average price per square foot increased to $299.
Inventory decreased to 9,667 homes for sale, and the number of homes sold decreased to 6,837. This means that there is much less than a two month supply of homes on the market, which is a seller's market.
The breakdown of home prices stayed relatively the same. The percentages of available homes are: $0-$250,000 (8% of the market), $250,000-$500,000 (40%), $500,000-$750,000 (26%), $750,000+ (26%).
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 June compared to May, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Decreased from $555,645 to $522,768 (6.1%)
Anthem - Increased from $582,961 to $608,648 (4.4%)
Apache Junction - Increased from $311,266 to $357,029 (14.7%)
Avondale - Increased from $430,146 to $430,261 (0.1%)
Buckeye - Decreased from $421,510 to $416,219 (1.3%)
Casa Grande - Decreased from $339,431 to $322,458 (5.1%)
Cave Creek - (Median Price) Increased from $739,500 to $827,000 (11.8%)
Chandler - Decreased from $590,541 to $561,218 (4.9%)
Florence - Increased from $354,181 to $358,340 (1.1%)
Fountain Hills (Median Price)- Decreased from $680,000 to $625,000 (8.1%)
Gilbert - Increased from $613,077 to $629,043 (2.6%)
Glendale - Increased from $437,801 to $449,451 (2.7%)
Goodyear - Increased from $521,085 to $531,443 (1.9%)
Laveen - Increased from $452,901 to $466,061 (2.9%)
Litchfield Park - Increased from $514,067 to $531,431 (3.4%)
Maricopa - Increased from $370,155 to $378,504 (2.3%)
Mesa - Increased from $442,888 to $465,385 (5.1%)
Paradise Valley (median price) -Increased from $2,925,000 to $3,050,000 (4.3%)
Peoria - Increased from $524,700 to $581,662 (10.8%)
Phoenix - Decreased from $535,334 to $509,634 (4.9%)
Queen Creek - Increased from 666,753 to $695,115 (8.0%)
San Tan Valley - Increased from $423,454 to $447,114 (5.6%)
Scottsdale - Increased from $1,119,600 to $1,172,576 (4.7%)
Sun City - Decreased from $301,918 to $286,257 (5.2%)
Sun City West - Increased from $386,002 to $390,243 (1.1%)
Surprise - Increased from $445,143 to $453,221 (1.8%)
Tempe - Decreased from $492,803 to $481,747 (2.3%)
