If you have been receiving this monthly update of the Phoenix area real estate market for a while, you know that I've talked at length about price increases and the underlying cause of low inventory. Both of those trends continued again this month, and I firmly believe that until home builders can increase their rate of building, these increases are going to continue for the foreseeable future. The Phoenix area is simply experiencing a great deal of growth and economic expansion, and there is just too much data that suggests that this trend wont be reversing anytime soon. The complete, latest numbers are below.
The overall average home price in February compared to January increased by 3.9%, moving from $549,291 to $570,803. The year over year increase over February 2021 was 22%. The average sale price as a percentage of the listing price was 101% (meaning on average homes are selling for 1% above the asking price), and the average days on the market was 33. The average price per square foot increased to $323.
Inventory decreased yet again to 3,719 homes for sale, and the number of homes sold increased to 7,507. 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 stayed relatively the same. The percentages of available homes are: $0-$150,000 (4% of the market), $150,000-$250,000 (4%), $250,000-$500,000 (41%), $500,000+ (51%).
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 February compared to January, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Increased from $571,072 to $592,085 (3.6%)
Anthem - Decreased from $589,703 to $583,668 (1.1%)
Apache Junction - Increased from $323,803 to $339,291 (4.8%)
Avondale - Increased from $421,290 to $425,576 (1.1%)
Buckeye - Decreased from $457,393 to $430,281 (5.9%)
Casa Grande - Increased from $312,466 to $346,880 (11.1%)
Cave Creek - (Median Price) Decreased from $785,000 to $761,000 (3.1%)
Chandler - Increased from $546,966 to $580,180 (6.1%)
Florence - Decreased from $357,081 to $329,516 (7.8%)
Fountain Hills (Median Price)- Increased from $632,500 to $699,000 (10.5%)
Gilbert - Increased from $566,425 to $609,418 (7.6)
Glendale - Increased from $436,200 to $445,805 (2.2%)
Goodyear - Increased from $498,688 to $534,265 (7.1%)
Laveen - Increased from $454,596 to $479,797 (5.5%)
Litchfield Park - Increased from $573,821 to $594,440 (3.6%)
Maricopa - Increased from $383,006 to $395,694 (3.3%)
Mesa - Increased from $445,452 to $457,710 (2.7%)
Paradise Valley (median price) -Increased from $2,530,000 to $2,982,750 (17.9%)
Peoria - Increased from $514,421 to $523,293 (1.7%)
Phoenix - Increased from $490,940 to $520,366 (5.9%)
Queen Creek - Increased from $618,027 to $632,822 (2.4%)
San Tan Valley - Increased from $445,947 to $457,381 (2.6%)
Scottsdale - Increased from $1,015,115 to $1,079,842 (6.4%)
Sun City - Increased from $342,278 to $347,111 (1.4%)
Sun City West - Increased from $393,619 to $414,652 (5.3%)
Surprise - Increased from $452,156 to $462,549 (2.3%)
Tempe - Increased from $451,663 to $491,321 (8.8%)
