The Phoenix real estate market continued its up and down pattern that it has followed over the past several months. The average home price dipped in September despite inventory and sales remaining fairly steady. Given the upcoming holiday season, this trend may continue for the remainder of the year. High interest rates continue to be the significant driving force behind the market changes, and rates don't appear to be decreasing in the foreseeable future. The market changes have created some good purchasing opportunities which have not been seen in the past several years. The complete, latest numbers are below.
The overall average home price in September compared to August decreased by 3.9%, moving from $564,484 to $542,349. The year over year increase over September 2021 was 9.7%. 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 46. The average price per square foot decreased to $336.
Inventory increased slightly to 18,679 homes for sale, and the number of homes sold stayed approximately the same at 5,906. This means that there is a three month supply of homes on the market, which is considered the start of a balanced market.
The breakdown of home prices experienced some changes, with inventory on the market between $250,000 and $500,000 showing the largest increase for the fourth straight month. The percentages of available homes are: $0-$250,000 (5% of the market), $250,000-$500,000 (51%), $500,000-$750,000 (25%), $750,000+ (19%).
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 September compared to August, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Decreased from $594,264 to $576,157 (3.1%)
Anthem - Increased from $544,215 to $588,592 (8.2%)
Apache Junction - Decreased from $391,052 $317,756 (18.8%)
Avondale - Decreased from $429,086 to $425,918 (0.7%)
Buckeye - Decreased from $490,890 to $445,777 (9.2%)
Casa Grande - Decreased from $369,448 to $345,527 (6.5%)
Cave Creek - (Median Price) Decreased from $800,000 to $745,000 (6.9%)
Chandler - Increased from $569,838 to $603,398 (5.9%)
Florence - Decreased from $371,457 to $347,945 (6.4%)
Fountain Hills (Median Price)- Increased from $649,000 to $650,000 (0.1%)
Gilbert - Decreased from $667,876 to $640,090 (4.2%)
Glendale - Decreased from $430,923 to $425,817 (1.2%)
Goodyear - Decreased from $532,289 to $510,787 (4.1%)
Laveen - Decreased from $515,569 to $490,182 (4.1%)
Litchfield Park - Decreased from $615,567 to $547,836 (11.1%)
Maricopa - Decreased from $398,492 to $396,145 (0.6%)
Mesa - Increased from $460,200 to $463,002 (0.6%)
Paradise Valley (median price) -Decreased from $2,625,000 to $2,100,000 (20%)
Peoria - Decreased from $555,861 to $552,709 (0.6%)
Phoenix - Decreased from $503,748 to $494,796 (1.8%)
Queen Creek - Decreased from $763,566 to $703,036 (7.9%)
San Tan Valley - Increased from $468,443 to $480,279 (2.5%)
Scottsdale - Decreased from $1,116,843 to $977,409 (12.5%)
Sun City - Increased from $307,697 to $327,518 (6.4%)
Sun City West - Increased from $402,248 to $441,980 (9.9%)
Surprise - Decreased from $473,726 to $446,166 (5.9%)
Tempe - Decreased from $495,585 to $484,690 (2.2%)
