Phoenix AZ Real Estate Housing Market Report - January 2023
The average sold price per square foot of Phoenix homes decreased for the second straight month. The average sold price per square foot of Phoenix homes has gone from a high of $317/sf in May to $274/sf in January. This is the 8th month in a row that the average sold price per square foot has remained the same or decreased.
The Phoenix days on market increased for the 8th straight month after decreasing the four previous months. The days on market has almost tripled from 24 DOM in May to 71 DOM in January. The DOM to sell a home in Phoenix is increasing, but a balanced market would expect to see an average DOM closer to 90. Homes in Phoenix are still selling, but at a slower pace than the previous two years of frenzied activity.
After decreasing for 6 months in a row, new listings in Phoenix have increased to start 2023, going from 726 in December to 1,032 in January. This is still the lowest number of new Phoenix listings for January over the last five years. With this recent increase, the number of new Phoenix listings are still -25.1% lower than in January of 2022.
After increasing for the previous six months, the number of active Phoenix listings has now decreased 4 months in a row. Active Phoenix listings are higher this January than in January of the previous two years. The inventory of Phoenix homes is now higher than in January of last year by 58.9%.
Home sales are decreasing due to higher prices, higher interest rates, and inflation. This is a sign that the housing market in Phoenix is shifting to where it is more balanced, and not such an intense seller's market.
With that said, median home values in Phoenix have actually decreased by -6.2% since January of 2022. This is the third straight time we have seen a year-over-year decrease. This has not happened in the last four years until now. With interest rates hovering around 6.5%, and inflation continuing to impact our economy, the demand for homes will continue to slow.
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