The Phoenix real estate market welcomed a good influx of new inventory last month, bringing some much needed relief from record breaking low inventory levels. While the increased choices for buyers is very good news, the effect on pricing has not yet been felt as prices continued to rise, and homes continued to sell, on average, for above the asking price. Regardless, the improvement in the market is clear based on last month's numbers. The complete, latest numbers are below.
The overall average home price in May compared to April increased by 0.2%, moving from $600,647 to $601,626. The year over year increase over May 2021 was 17.2%. The average sale price as a percentage of the listing price was 102% (meaning on average homes are selling for 2% above the asking price), and the average days on the market was 25. The average price per square foot decreased to $327.
Inventory increased to 9,037 homes for sale, and the number of homes sold decreased to 8,173. This means that there is finally more than a one month supply of homes on the market, which is still a strong seller's market.
The breakdown of home prices experienced some changes. The percentages of available homes are: $0-$250,000 (4% of the market), $250,000-$500,000 (36%), $500,000-$750,000 (33%), $750,000+ (27%).
Foreclosures and short sales continue to stay at their record low rates of 0.1% 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 $608,644 to $662,341 (8.8%)
Anthem - Increased from $600,733 to $648,962 (8.1%)
Apache Junction - Increased from $335,765 to $335,836 (0.1%)
Avondale - Decreased from $457,527 to $449,179 (1.9%)
Buckeye - Increased from $472,296 to $492,415 (4.3%)
Casa Grande - Increased from $350,539 to $366,798 (4.6%)
Cave Creek - (Median Price) Decreased from $915,000 to $887,500 (3.1%)
Chandler - Increased from $600,352 to $651,636 (8.5%)
Florence - Increased from $359,990 to $375,098 (4.2%)
Fountain Hills (Median Price)- Decreased from $669,900 to $623,000 (7.1%)
Gilbert - Increased from $676,328 to $697,709 (3.2%)
Glendale - Decreased from $480,420 to $460,041 (4.3%)
Goodyear - Increased from $548,515 to $572,396 (4.3%)
Laveen - Increased from $471,345 to $494,942 (5.1%)
Litchfield Park - Increased from $585,240 to $630,189 (7.7%)
Maricopa - Increased from $418,332 to $418,880 (0.1%)
Mesa - Increased from $448,092 to $490,059 (9.4%)
Paradise Valley (median price) -Decreased from $3,500,000 to $3,240,000 (7.5%)
Peoria - Increased from $535,334 to $569,783 (6.4%)
Phoenix - Decreased from $557,885 to $553,385 (0.9%)
Queen Creek - Increased from $672,444 to $687,746 (2.3%)
San Tan Valley - Decreased from $496,932 to $482,670 (2.9%)
Scottsdale - Decreased from $1,134,078 to $1,121,116 (1.2%)
Sun City - Increased from $327,823 to $338,431 (3.2%)
Sun City West - Increased from $436,475 to $454,457 (4.1%)
Surprise - Decreased from $485,755 to $485,473 (0.1%)
Tempe - Decreased from $522,427 to $513,788 (1.7%)
