The Phoenix real estate market, after experiencing weakening prices and rising inventory for the past 3 months, already appears to be showing signs of potentially finding the bottom. Of course this is purely speculative, however the increase in inventory was much more subtle last month, and home prices actually increased slightly. Home builders have already responded to the increasing inventory by slowing production, which many experts fear will quickly put the market back into a state of undersupply and rapidly rising prices. While this may not match the real estate news being reported nationally, it's important to understand that every market is local, and Phoenix continues to show very strong economic and population growth. The complete, latest numbers are below.
The overall average home price in August compared to July increased by 0.9%, moving from $559,588 to $564,484. The year over year increase over August 2021 was 13.5%. 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 39. The average price per square foot increased to $349.
Inventory increased slightly to 17,225 homes for sale, and the number of homes sold decreased to 5,757. 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 third straight month. The percentages of available homes are: $0-$250,000 (4% of the market), $250,000-$500,000 (49%), $500,000-$750,000 (28%), $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 August compared to July, in some of the individual cities in the Phoenix metro area:
Ahwatukee - Increased from $566,839 to $594,264 (4.8%)
Anthem - Decreased from $670,069 to $544,215 (18.8%)
Apache Junction - Increased from $352,813 to $391,052 (10.8%)
Avondale - Decreased from $435,425 to $429,086 (1.5%)
Buckeye - Increased from $465,491 to $490,890 (5.5%)
Casa Grande - Decreased from $380,061 to $369,448 (2.8%)
Cave Creek - (Median Price) Increased from $796,000 to $800,000 (0.5%)
Chandler - Decreased from $582,516 to $569,838 (2.2%)
Florence - Decreased from $398,128 to $371,457 (6.7%)
Fountain Hills (Median Price)- Increased from $595,000 to $649,000 (9.1%)
Gilbert - Decreased from $688,859 to $667,876 (3.1%)
Glendale - Decreased from $462,102 to $430,923 (6.8%)
Goodyear - Decreased from $537,461 to $532,289 (1.0%)
Laveen - Increased from $493,766 to $515,569 (4.4%)
Litchfield Park - Decreased from $644,437 to $615,567 (4.5%)
Maricopa - Decreased from $430,556 to $398,492 (7.5%)
Mesa - Increased from $458,496 to $460,200 (0.3%)
Paradise Valley (median price) -Decreased from $3,350,000 to $2,625,000 (21.7%)
Peoria - Increased from $545,528 to $555,861 (1.9%)
Phoenix - Increased from $503,315 to $503,748 (0.1%)
Queen Creek - Increased from $729,306 to $763,566 (4.7%)
San Tan Valley - Decreased from $481,071 to $468,443 (2.6%)
Scottsdale - Increased from $1,074,661 to $1,116,843 (3.9%)
Sun City - Decreased from $330,584 to $307,697 (6.9%)
Sun City West - Decreased from $422,002 to $402,248 (4.7%)
Surprise - Increased from $470,316 to $473,726 (0.7%)
Tempe - Increased from $488,580 to $495,585 (1.4%)
