The results for May in the Phoenix real estate market were anticipated to be the most impacted by Covid, because May home closings are a result of contracts that are created in April which was the hardest hit month in Arizona. As expected, prices did dip, but not in the manner that was predicted. Based on the numbers, it appears that a slowdown almost exclusively in the luxury market drug the overall pricing numbers down, while other segments of the market stayed fairly strong. In fact, despite the overall price decrease in the market, over 40% of the individual Phoenix area cities that we track actually experienced price increases in May. The cities that have a high concentration of luxury homes took the hardest hit. The complete, latest numbers are below.
The overall average home price in May compared to April decreased by 4.1%, moving from $375,776 to $360,734. The increase over May 2019 was 2.5%. The average price per square foot decreased to $182.
Inventory dropped dramatically to 8,973 homes for sale, and the number of homes sold decreased to 6,446. This means that despite the shutdown in April and early May, there is just over a one month supply of homes on the market, which is a strong seller's market.
The breakdown of home prices changed as mentioned above, with homes over $500,000 seeing a fairly significant increase while all other segments decreased. The percentages of available homes are: $0-$150,000 (5% of the market), $150,000-$250,000 (12%), $250,000-$500,000 (43%), $500,000+ (40%).
Foreclosures and short sales continue to stay at their record low rates of 0.5% of the market and 0.2% 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 - Decreased from $414,693 to $391,196 (5.7%)
Anthem - Decreased from $408,464 to $369,405 (9.6%)
Avondale - Decreased from $278,303 to $266,845 (4.2%)
Buckeye - Increased from $272,579 to $284,649 (4.4%)
Cave Creek - (Median Price) Decreased from $555,500 to $541,000 (2.6%)
Chandler - Increased from $371,947 to $381,373 (2.5%)
Fountain Hills (Median Price)- Decreased from $440,000 to $415,000 (5.7%)
Gilbert - Increased from $399,625 to $402,899 (0.8%)
Glendale - Decreased from $301,681 to $281,495 (6.7%)
Goodyear - Increased from $335,967 to $338,560 (0.7%)
Litchfield Park - Decreased from $387,585 to $382,663 (2.3%)
Maricopa - Increased from $246,745 to $252,480 (2.3%)
Mesa - Increased from $312,385 to $315,440 (0.9%)
Paradise Valley (median price) -Decreased from $1,625,000 to $1,475,000 (9.3%)
Peoria - Decreased from $358,228 to $345,341 (3.6%)
Phoenix - Decreased from $351,997 to $341,856 (2.9%)
Queen Creek - Decreased from $411,148 to $405,320 (1.4%)
San Tan Valley - Decreased from $286,197 to $279,489 (2.3%)
Scottsdale - Decreased from $673,711 to $603,519 (10.4%)
Sun City - Increased from $237,468 to $245,183 (3.2%)
Sun City West - Increased from $277,924 to $282,569 (1.6%)
Surprise - Decreased from $303,934 to $299,994 (1.3%)
Tempe - Increased from $326,735 to $329,407 (0.8%)
