The Phoenix real estate market continued to show resilience in February. In the face of ongoing high interest rates, the market experienced an increase in the average home price for the second consecutive month. Both resale and new home inventory continues to be low which is a major driving factor in the price increases. Given the current trend, it appears likely that price increases will continue for the remainder of the spring. The complete, latest numbers are below.
The overall average home price in February compared to January increased by 0.2%, moving from $527,709 to $529,063. The year over year decrease over February 2022 was 7.4%. 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 77. The average price per square foot increased to $330.
Inventory decreased to 12,722 homes for sale, and the number of homes sold increased to 5,336. This means that there is less than a three 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 (7% of the market), $250,000-$500,000 (46%), $500,000-$750,000 (24%), $750,000+ (23%).
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 February compared to January, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Decreased from $526,051 to $489,407 (6.9%)
Anthem - Decreased from $596,426 to $527,628 (11.6%)
Apache Junction - Increased from $279,904 to $305,185 (9.1%)
Avondale - Decreased from $403,655 to $396,512 (1.8%)
Buckeye - Decreased from $426,250 to $403,061 (5.5%)
Casa Grande - Increased from $309,812 to $317,577 (2.5%)
Cave Creek - (Median Price) Decreased from $720,000 to $710,000 (1.4%)
Chandler - Increased from $536,008 to $570,210 (6.4%)
Florence - Increased from $316,711 to $331,357 (4.6%)
Fountain Hills (Median Price)- Increased from $525,000 to $547,500 (4.3%)
Gilbert - Increased from $578,774 to $581,500 (0.4%)
Glendale - Decreased from $415,215 to $406,668 (2.1%)
Goodyear - Decreased from $497,648 to $496,240 (0.3%)
Laveen - Increased from $430,439 to $457,193 (6.2%)
Litchfield Park - Increased from $479.998 to $549,315 (14.5%)
Maricopa - Increased from $359.309 to $356,165 (0.9%)
Mesa - Decreased from $425,175 to $408,023 (4.1%)
Paradise Valley (median price) -Decreased from $3,575,000 to $3,025,000 (14.4%)
Peoria - Increased from $474,897 to $498,589 (5.1%)
Phoenix - Increased from $474,224 to $478,949 (0.9%)
Queen Creek - Decreased from $711,482 to $577,941 (18.8%)
San Tan Valley - Decreased from $422,041 to $412,602 (2.3%)
Scottsdale - Increased from $966,919 to $1,135,182 (17.4%)
Sun City - Decreased from $296,648 to $290,081 (2.3%)
Sun City West - Increased from $391,583 to $392,628 (0.2%)
Surprise - Decreased from $445,938 to $445,849 (0.1%)
Tempe - Increased from $449,203 to $458,196 (2.1%)
