The Phoenix real estate market finished off the spring, which is historically Phoenix's most active home buying and selling period, with another strong month of price growth. The volume of home sales increased while the number of new listings did not, therefore creating even more demand for a limited supply of inventory. Interest rates continue to have some buyers on the fence, but it appears they have some sellers on the fence as well. One thing that has become abundantly clear is that until more sellers opt to list their homes, sustained price declines are unlikely in the near future. The complete, latest numbers are below.
The overall average home price in May compared to April increased by 2.3%, moving from $561,553 to $574,357. The year over year decrease over May 2022 was 4.6%. The average sale price as a percentage of the listing price was 98% (meaning on average homes are selling for 2% below the asking price), and the average days on the market was 64. The average price per square foot decreased to $276.
Inventory decreased to 9,834 homes for sale, and the number of homes sold increased to 7,549. 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 (9% of the market), $250,000-$500,000 (40%), $500,000-$750,000 (24%), $750,000+ (27%).
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 - Decreased from $562,922 to $555,645 (1.3%)
Anthem - Decreased from $628,251 to $582,961 (7.3%)
Apache Junction - Increased from $310,722 to $311,266 (0.1%)
Avondale - Increased from $398,867 to $430,146 (7.8%)
Buckeye - Decreased from $429,158 to $421,510 (1.8%)
Casa Grande - Increased from $316,700 to $339,431 (7.2%)
Cave Creek - (Median Price) Decreased from $852,000 to $739,500 (13.3%)
Chandler - Increased from $575,523 to $590,541 (2.6%)
Florence - Increased from $322,765 to $354,181 (9.7%)
Fountain Hills (Median Price)- Decreased from $720,000 to $680,000 (5.6%)
Gilbert - Decreased from $631,946 to $613,077 (3.0%)
Glendale - Increased from $420,115 to $437,801 (4.2%)
Goodyear - Increased from $503,942 to $521,085 (3.4%)
Laveen - Increased from $439,542 to $452,901 (3.1%)
Litchfield Park - Increased from $501,996 to $514,067 (2.4%)
Maricopa - Increased from $356,072 to $370,155 (3.9%)
Mesa - Increased from $424,959 to $442,888 (4.2%)
Paradise Valley (median price) -Increased from $2,750,000 to $2,925,000 (6.4%)
Peoria - Decreased from $552,515 to $524,700 (5.1%)
Phoenix - Increased from $509,763 to $535,334 (5.0%)
Queen Creek - Increased from $617,334 to $666,753 (8.0%)
San Tan Valley - Increased from $415,383 to $423,454 (1.9%)
Scottsdale - Increased from $1,075,404 to $1,119,600 (4.1%)
Sun City - Increased from $290,277 to $301,918 (4.0%)
Sun City West - Decreased from $413,218 to $386,002 (6.6%)
Surprise - Increased from $442,771 to $445,143 (0.5%)
Tempe - Increased from $446,565 to $492,803 (10.4%)
