Phoenix AZ Real Estate Housing Market Report - January 2023
The average sales price of Phoenix homes has decreased for the third month in a row, going from $555,285 in October to $522,736 to begin the new year. The average sales price of Phoenix homes started the year lower than where it started last January. The average sales price for Phoenix homes in January is significantly lower than the all-time high of $621,488 that occurred in May of 2022.
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.
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 increasing last month to end 2022, Phoenix home sales decreased in January, going from 790 in December to 664 this month. This is typically the slowest month of the year, and with the most recent decrease in Phoenix homes sold, total home sales for January are down -41.9% from January of 2022.
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.
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.
For more detailed stats on the Phoenix Housing Market, just click on the image below. Then call/text me when you are ready to buy or sell your next home.
If you’re considering selling your house, let my expertise guide you through the process to ensure a smooth transaction while navigating today's housing market.
If you're thinking of buying a home, connect with me to begin your journey to homeownership.
Whether you're ready to buy, sell (or both), or invest in East Valley real estate, reach out to me today so we can put your plans into motion. Being a trusted real estate professional, I can answer your questions and help you determine your next steps.
If you're thinking of buying a home, connect with me to begin your journey to homeownership.
Whether you're ready to buy, sell (or both), or invest in East Valley real estate, reach out to me today so we can put your plans into motion. Being a trusted real estate professional, I can answer your questions and help you determine your next steps.
Feel free to reach out to me if you have any questions about home buying, selling, or investing in the Phoenix Metro or East Valley areas. Just give me a call or text at 602-295-6807 and I will be glad to help.
"Real Estate is not just a job for me, it's about making a difference in the lives of others."
Serving East Valley cities, including Chandler, Gilbert, Tempe, Mesa, Phoenix, Scottsdale, and Ahwatukee
Troy Erickson Realtor | 3175 W. Stephens Place, Chandler, AZ 85226 | 602-295-6807 | TroyEricksonRealtor@gmail.com
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Troy Erickson has been blogging about Arizona real estate since 2006. He is a residential real estate agent who specializes in helping home buyers, sellers, and investors in Chandler and the East Valley. He has been recognized for his local market expertise, and frequently volunteers within his community.
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