After 3 consecutive months of home price decreases in the Phoenix metro area, prices rebounded sharply in October. The result is not entirely unexpected due to the factors covered in previous reports, most notably the low inventory of available homes which has persisted for several years now. Homes continue to be in short supply and are selling, on average, above their asking price. Typically November and December are slower purchase months, so it will be interesting to see how the market responds to the historically lower demand. The complete, latest numbers are below.
The overall average home price in October compared to September increased by 5.7%, moving from $495,087 to $523,592. The year over year increase over October 2020 was 21%. The average sale price as a percentage of the listing price was 100.2% (meaning on average homes are selling just slightly above asking price), and the average days on the market was 29. The average price per square foot increased to $270.
Inventory decreased slightly to 6,555 homes for sale, and the number of homes sold also decreased slightly to 8,197. This means that there is 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 exactly the same. The percentages of available homes are: $0-$150,000 (3% of the market), $150,000-$250,000 (5%), $250,000-$500,000 (45%), $500,000+ (48%).
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 October compared to September, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Increased from $511,357 to $511,961 (0.1%)
Anthem - Increased from $507,552 to $591,874 (16.6%)
Apache Junction - Increased from $311,924 to $341,818 (9.6%)
Avondale - Decreased from $392,870 to $392,048 (0.2%)
Buckeye - Decreased from $421,599 to $418,606 (0.7%)
Casa Grande - Increased from $315,233 to $323,357 (2.6%)
Cave Creek - (Median Price) Decreased from $687,000 to $675,000 (1.8%)
Chandler - Increased from $507,570 to $522,757 (2.9%)
Florence - Increased from $326,833 to $330,213 (1.1%)
Fountain Hills (Median Price)- Increased from $580,000 to $594,000 (2.4%)
Gilbert - Increased from $569,968 to $580,559 (1.8%)
Glendale - Increased from $409,266 to $411,384 (0.5%)
Goodyear - Decreased from $479,075 to $472,585 (1.4%)
Laveen - Increased from $430,925 to $444,152 (7.2%)
Litchfield Park - Decreased from $575,808 to $551,869 (4.2%)
Maricopa - Increased from $362,505 to $368,019 (1.5%)
Mesa - Increased from $420,115 to $428,774 (2.1%)
Paradise Valley (median price) -Increased from $2,120,000 to $2,500,000 (17.9%)
Peoria - Increased from $492,858 to $498,700 (1.1%)
Phoenix - Increased from $452,783 to $471,956 (4.2%)
Queen Creek - Increased from $594,230 to $652,696 (9.8%)
San Tan Valley - Increased from $425,253 to $435,814 (2.5%)
Scottsdale - Increased from $898,968 to $987,078 (9.8%)
Sun City - Increased from $313,163 to $332,641 (6.2%)
Sun City West - Increased from $373,286 to $399,191 (6.9%)
Surprise - Increased from $415,973 to $431,326 (3.7%)
Tempe - Increased from $427,453 to $471,842 (10.4%)
