Very low interest rates and a low inventory of available homes for sale continue to push the Phoenix area real estate market higher. With the rapidly increasing home prices comes the frequent question of the sustainability of this market. While of course nobody can predict the future, lending requirements for buyers remain extremely stringent, and there is still a significant backlog of home buyers who are either waiting to qualify to purchase or are waiting until it becomes a little less competitive. While we absolutely do not predict that double digit annual price increases will continue, it does appear that some price growth will be happening for quite some time still. The complete, latest numbers are below.
The overall average home price in September compared to August increased by 2.2%, moving from $408,886 to $418,032. The increase over September 2019 was a staggering 23%. The average price per square foot increased to $209.
Inventory increased slightly to 7,506 homes for sale, and the number of homes sold also increased to 8,775. This means that there is still less than a one month supply of homes on the market, which is an extremely strong seller's market.
The breakdown of home prices changed slightly, with homes under $150,000 bumping back up a couple of percentage points after hitting a record low last month. The percentages of available homes are: $0-$150,000 (5% of the market), $150,000-$250,000 (11%), $250,000-$500,000 (42%), $500,000+ (42%).
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 September compared to August, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Increased from $423,540 to $439,905 (3.8%)
Anthem - Increased from $392,309 to $407,636 (3.9%)
Avondale - Increased from $292,052 to $294,968 (0.9%)
Buckeye - Increased from $309,218 to $314,842 (1.8%)
Cave Creek - (Median Price) Increased from $600,000 to $637,000 (6.1%)
Chandler - Decreased from $413,173 to $408,611 (1.1%)
Fountain Hills (Median Price)- Increased from $512,000 to $527,500 (3.0%)
Gilbert - Increased from $437,204 to $450,627 (3.1%)
Glendale - Decreased from $319,691 to $319,478 (0.1%)
Goodyear - Increased from $342,585 to $353,052 (3.1%)
Litchfield Park - Decreased from $423,244 to $415,276 (1.9%)
Maricopa - Decreased from $274,843 to $272,540 (0.9%)
Mesa - Increased from $326,428 to $344,556 (5.5%)
Paradise Valley (median price) -Increased from $1,362,500 to $1,850,000 (35.7%)
Peoria - Increased from $392,278 to $393,659 (0.3%)
Phoenix - Increased from $371,018 to $388,777 (4.8%)
Queen Creek - Increased from $454,095 to $463,249 (2.0%)
San Tan Valley - Decreased from $303,499 to $299,609 (1.3%)
Scottsdale - Increased from $723,518 to $745,812 (3.1%)
Sun City - Decreased from $260,406 to $257,949 (0.9%)
Sun City West - Decreased from $299,073 to $297,590 (0.5%)
Surprise - Increased from $310,520 to $317,401(2.2%)
Tempe - Increased from $356,682 to $382,099 (7.1%)
