Low inventory and high demand continued to push home prices up in May, however in a pleasant surprise, inventory did increase slightly toward the end of the month and the market is now showing an additional 1,200 homes available compared to the same time last month. We will need another month to tell if this is just a one month anomoly or the start of a trend, but the extra inventory is welcome news for buyers. The complete, latest numbers are below.
The overall average home price in May compared to April increased by 2.3%, moving from $502,281 to $513,917. The increase over May 2020 was 44%. The average sale price as a percentage of the listing price was 102% (meaning on average homes are selling above the asking price), and the average days on the market was 26. The average price per square foot increased to $300.
Inventory increased to 5,008 homes for sale, and the number of homes sold decreased slightly to 9,097. 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 showed some changes last month, with homes priced under $250,000 becoming less and less available. The percentages of available homes are: $0-$150,000 (3% of the market), $150,000-$250,000 (8%), $250,000-$500,000 (43%), $500,000+ (46%).
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 May compared to April, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Increased from $506,673 to $543,297 (7.2%)
Anthem - Decreased from $575,066 to $534,223 (7.1%)
Apache Junction - Decreased from $290,441 to $283,408 (2.4%)
Avondale - Increased from $337,764 to $366,715 (8.6%)
Buckeye - Increased from $385,774 to $397,630 (3.0%)
Casa Grande - Increased from $276,931 to $290,394 (4.9%)
Cave Creek - (Median Price) Decreased from $705,250 to $700,000 (0.7%)
Chandler - Increased from $495,184 to $514,229 (3.8%)
Florence - Increased from $276,688 to $286,229 (3.4%)
Fountain Hills (Median Price)- Increased from $613,000 to $709,267 (15.7%)
Gilbert - Increased from $511,284 to $563,984 (1.10%)
Glendale - Increased from $371,934 to $392,008 (5.4%)
Goodyear - Increased from $415,350 to $456,554 (9.9%)
Litchfield Park - Increased from $483,406 to $493,412 (2.1%)
Maricopa - Increased from $315,980 to $334,692 (5.9%)
Mesa - Increased from $375,232 to $401,452 (6.9%)
Paradise Valley (median price) -Decreased from $2,335,000 to $2,330,000 (0.2%)
Peoria - Increased from $448,643 to $471,704 (5.1%)
Phoenix - Increased from $440,806 to $456,434 (3.5%)
Queen Creek - Increased from $544,872 to $558,564 (2.5%)
San Tan Valley - Increased from $371,769 to $381,396 (2.5%)
Scottsdale - Increased from $920,600 to $955,295 (3.8%)
Sun City - Increased from $291,848 to $303,034 (3.8%)
Sun City West - Increased from $345,462 to $367,604 (6.4%)
Surprise - Increased from $365,562 to $387,912 (6.1%)
Tempe - Decreased from $430,439 to $427,562 (0.7%)
