The Phoenix real estate market experienced some price retraction in May despite inventory staying low. High interest rates continue to keep a lot of buyers on the sidelines as they await future reductions, although it appears that any reductions may still be a ways off. Days on the market for active listings is still well below historical averages, and homes are still selling on average for 98% of their listing price. It's reasonable to expect that no significant changes in the market, either up or down, are forthcoming in the absence of any larger economic changes. The complete, latest numbers are below.
The overall average home price in May compared to April decreased by 2.5%, moving from $621,591 to $606,381. The year over year increase over May 2023 was 5.6%. 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 62. The average price per square foot increased to $320.
Inventory increased to 15,509 homes for sale, and the number of homes sold decreased to 6,972. This means that there is just over a two month supply of homes on the market, which is still 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 (41%), $500,000-$750,000 (25%), $750,000+ (25%). (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 $668,132 to $607,071 (9.2%)
Anthem - Decreased from $705,437 to $687,324 (2.6%)
Apache Junction - Increased from $447,104 to $533,994 (23.9%)
Avondale - Decreased from $446,203 to $427,780 (2.7%)
Buckeye - Decreased from $465,784 to $447,740 (3.9%)
Casa Grande - Decreased from $342,543 to $340,108 (0.8%)
Cave Creek - (Median Price) Decreased from $880,000 to $835,000 (5.2%)
Chandler - Decreased from $667,554 to $641,179 (3.9%)
Florence - Increased from $362,420 to $372,638 (2.8%)
Fountain Hills (Median Price)- Increased from $675,000 to $755,000 (4.9%)
Gilbert - Increased from $702,003 to $740,398 (5.5%)
Glendale - Increased from $487,541 to $501,035 (2.8%)
Goodyear - Decreased from $551,954 to $530,004 (4.1%)
Laveen - Increased from $466,218 to $484,631 (3.9%)
Litchfield Park - Decreased from $595,997 to $579,318 (2.8%)
Maricopa - Decreased from $379,621 to $376,041 (1.1%)
Mesa - Increased from $551,141 to $585,537 (6.2%)
Paradise Valley (median price) -Increased from $2,757,000 to $3,900,000 (41.4%)
Peoria - Increased from $622,414 to $622,671 (0.1%)
Phoenix - Decreased from $669,896 to $639,424 (4.5%)
Queen Creek - Decreased from $598,435 to $586,083 (2.1%)
San Tan Valley - Decreased from $463,920 to $456,924 (2.5%)
Scottsdale - Decreased from $1,660,916 to $1,528,911 (7.9%)
Sun City - Decreased from $358,616 to $354,719 (1.1%)
Sun City West - Increased from $423,266 to $447,698 (5.8%)
Surprise - Increased from $475,240 to $477,879 (0.5%)
Tempe - Decreased from $665,326 to $572,465 (14.1%)
