Home values in the Phoenix area finished off the spring on a strong note as expected. February through May are historically the strongest months and this year was no different. Although home sales were strong across all price points, the market for homes over $500,000 saw it's first improvement in a long time.
The overall average home price in May increased by 2.7%, moving from $296,479 to $304,544. The increase over May 2016 was 6.2%. The average price per square foot increased to $188.
Inventory decreased yet again to 16,536 homes for sale, and the number of sold homes increased sharply to 9,319. This indicates that there is a one and a half month supply of homes on the market, which is a strong seller's market.
The breakdown of homes currently available remained fairly stable, although the percentage of homes at $500,000 or more dipped. The percentages of available homes are: $0-$150,000 (6% of the market), $150,000-$250,000 (23%), $250,000-$500,000 (42%), $500,000+ ($29%).
Foreclosures and short sales continue to stay at their record low rates of 0.9% of the market and 0.7% 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 May compared to April, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Increased from $310,887 to $316,087 (1.7%)
Anthem - Increased from $288,000 to $322,188 (12%)
Avondale - Increased from $209,013 to $225,255 (7.7%)
Cave Creek - (Median Price) Increased from $376,000 to $441,000 (17.2%)
Chandler - Increased from $311,070 to $334,638 (7.8%)
Fountain Hills (Median Price)- Decreased from $343,500 to $340,000 (1.1%)
Gilbert - Increased from $316,896 to $325,032 (2.7%)
Glendale - Increased from $229,544 to $235,952 (2.8%)
Goodyear - Increased from $275,737 to $278,900 (1.1%)
Maricopa - Increased from $189,553 to $195,802 (3.3%)
Mesa - Increased from $241,544 to $251,904 (4.3%)
Paradise Valley (median price) -Increased from $1,271,000 to $1,350,000 (6.2%)
Peoria - Increased from $282,363 to $288,483 (2.2%)
Phoenix - Increased from $267,058 to $271,966 (1.8%)
Queen Creek - Decreased from $307,540 to $303,947 (1.2%)
San Tan Valley - Increased from $211,856 to $212,213 (0.2%)
Scottsdale - Decreased from $536,035 to $535,636 (0.1%)
Sun City - Decreased from $194,693 to $191,020 (1.9%)
Sun City West - Decreased from $236,577 to $225,953 (4.5%)
Surprise - Increased from $227,855 to $234,737 (3.0%)
Tempe - Increased from $271,295 to $279,059 (2.9%)
