Phoenix AZ Real Estate Housing Market Report - May 2023
The average sold price per square foot of Phoenix homes also increased for the 4th straight month after decreasing for 9 months in a row. The average sold price per square foot of Phoenix homes has gone from $274/sf in January to $293/sf in May.
After increasing for 9 straight months, the Phoenix days on market has now decreased for the 3rd month in a row. The days on market went from 81 DOM in February down to 58 DOM in May. Homes in Phoenix are still selling, but at a slower pace than the previous 4 years of frenzied activity.
After slightly increasing for the last two months, new listings in Phoenix slightly decreased this month, going from 1,088 in April to 1,082 in May. This is the lowest number of new Phoenix listings for May over the last five years (as this number should be closer to 1,800 right now). With this recent decrease, the number of new Phoenix listings are still -44.6% lower than in May of 2022.
After increasing for the previous six months, the number of active Phoenix listings has now decreased 8 months in a row. Active listings have dropped from 3,729 in September of 2022 to 2,021 in May. This is the first month that active Phoenix inventory is lower than the same month last year since April of 2022. The inventory of Phoenix homes is now lower than in May of last year by -2.6%.
Demand is still high due to the low number of homes on the market. Homeowners are locked into a very low mortgage interest rate and don't want to lose that when they sell.
With that said, median home values in Phoenix have decreased by -7.0% since May of 2022. This is the 7th straight month we have seen a year-over-year decrease. This has not happened in the previous 4 years. Even with interest rates around 6.50%, the demand for homes will continue this spring.
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