Phoenix AZ Real Estate Housing Market Report - December 2022
The average sales price of Phoenix homes has decreased for the second month in a row, going from $555,356 in October to $540,539 this month. The average sales price of Phoenix homes ended the year lower than where it started, at $552,890 in January. The average sales price for Phoenix homes in December 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 slightly decreased this month. The average sold price per square foot of Phoenix homes has gone from $317/sf in May to $277/sf in December. This is the seventh 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 seventh straight month after decreasing the four previous months. The days on market has almost tripled from 24 DOM in May to 63 DOM in December. 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 slightly decreased this month. The average sold price per square foot of Phoenix homes has gone from $317/sf in May to $277/sf in December. This is the seventh 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 seventh straight month after decreasing the four previous months. The days on market has almost tripled from 24 DOM in May to 63 DOM in December. 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 three months in a row, Phoenix home sales increased in December, going from 759 in November to 800 this month. It is typical to see a slight increase in home sales as we head into the new year. With this most recent increase in Phoenix homes sold, total home sales for December are still down -47.7% from December of 2021.
After increasing for two straight months, new listings in Phoenix have now decreased for six consecutive months, going from 2,188 in June to 724 in December. This is now the lowest number of new listings in Phoenix over the last five years. With this recent decrease, the number of new Phoenix listings are -34.7% lower than in December of last year.
After increasing for the previous six months, the number of active Phoenix listings has now decreased three months in a row. Active Phoenix listings are still up from the first of the year, having gone from an all-time low of 1,637 in January to 2,871 in December to end the year. The inventory of Phoenix homes is now higher than in December of last year by 45.3%.
Fewer homeowners are listing their homes heading into winter, which is typical, and even with the decline in new listing, the number of listings is catching up with demand. Home sales are also 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 -3.4% since December of 2021. This is the second 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 rising, the demand for homes will continue to slow as we enter the new year.
After increasing for two straight months, new listings in Phoenix have now decreased for six consecutive months, going from 2,188 in June to 724 in December. This is now the lowest number of new listings in Phoenix over the last five years. With this recent decrease, the number of new Phoenix listings are -34.7% lower than in December of last year.
After increasing for the previous six months, the number of active Phoenix listings has now decreased three months in a row. Active Phoenix listings are still up from the first of the year, having gone from an all-time low of 1,637 in January to 2,871 in December to end the year. The inventory of Phoenix homes is now higher than in December of last year by 45.3%.
Fewer homeowners are listing their homes heading into winter, which is typical, and even with the decline in new listing, the number of listings is catching up with demand. Home sales are also 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 -3.4% since December of 2021. This is the second 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 rising, the demand for homes will continue to slow as we enter the new year.
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.
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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 | [email protected]
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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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