For the second consecutive month, Phoenix area home prices showed a small decrease month over month. However, a lot of upward pressure still exists on home prices, as inventory remains extremely low, and new-home builders continue to struggle to keep up with demand. Further evidence of the upward pressure is that despite the price drop, the average sales price was still higher than the average asking price. Realistically, what this means is that homes that were previously getting 10 to 20 offers are now getting 5 to 10 instead. The complete, latest numbers are below.
The overall average home price in August compared to July decreased by 1.3%, moving from $504,220 to $497,465. The year over year increase over August 2020 was 23%. The average sale price as a percentage of the listing price was 102% (meaning on average homes are selling above the asking price), and the average days on the market was 27. The average price per square foot stayed the same at $246.
Inventory decreased very slightly to 6,224 homes for sale, and the number of homes sold also decreased slightly to 8,445. 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 showed a few changes, with homes priced above $500,000 increasing as a percentage of the available inventory. 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+ (47%).
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 August compared to July, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Increased from $539,490 to $566,815 (5.1%)
Anthem - Decreased from $532,253 to $507,906 (4.6%)
Apache Junction - Increased from $309,111 to $370,102 (19.7%)
Avondale - Decreased from $384,256 to $382,503 (0.5%)
Buckeye - Decreased from $411,039 to $404,194 (1.7%)
Casa Grande - Increased from $298,362 to $305,325 (2.3%)
Cave Creek - (Median Price) Increased from $687,000 to $709,000 (3.2%)
Chandler - Increased from $531,674 to $531,934 (0.1%)
Florence - Decreased from $326,562 to $322,549 (1.2%)
Fountain Hills (Median Price)- Increased from $472,000 to $550,000 (16.5%)
Gilbert - Increased from $572,235 to $576,639 (0.7%)
Glendale - Increased from $395,678 to $404,767 (2.2%)
Goodyear - Increased from $447,162 to $461,267 (3.1%)
Laveen - Decreased from $430,321 to $422,237 (1.9%)
Litchfield Park - Decreased from $520,718 to $513,002 (1.5%)
Maricopa - Increased from $357,609 to $367,113 (2.7%)
Mesa - Increased from $415,142 to $431,287 (3.9%)
Paradise Valley (median price) -Increased from $2,335,000 to $2,350,000 (0.6%)
Peoria - Increased from $477,971 to $484,308 (1.3%)
Phoenix - Increased from $450,581 to $452,593 (0.4%)
Queen Creek - Decreased from $599,867 to $555,764 (7.4%)
San Tan Valley - Increased from $410,700 to $415,905 (1.3%)
Scottsdale - Increased from $894,748 to $896,512 (0.1%)
Sun City - Increased from $308,426 to $312,390 (1.3%)
Sun City West - Increased from $386,358 to $387,371 (0.2%)
Surprise - Increased from $411,953 to $427,949 (3.9%)
Tempe - Increased from $431,347 to $433,713 (0.5%)
