Tempe AZ Real Estate Housing Market Report - May 2023
After decreasing the last two months the average sold price per square foot of Tempe homes has increased this month, going from $282/sf in April to $300/sf in May.
After Tempe days on market increased 8 months in a row, Tempe DOM has now decreased 3 months in a row, going from 79 DOM in February to 43 DOM in May. Homes in Tempe are still selling reasonably fast, and sales should pick up through the spring, which is typically the time of the year when the Arizona housing market picks up.
The number of new Tempe listings finally decreased this month after increasing 4 months in a row, going from 90 in April to 71 in May. With this decrease, new listings in Tempe are lower than they have been in May of the previous five years, and they are now -54.8% lower than in May of 2022.
After decreasing for 7 straight months, the number of active listings has increased this month. Active listings have gone from 138 in April to 142 in May. Even with the increase, the number of active listings in Tempe are less than they were in May of last year by -17.0%. This is the first time active listings have been lower than they were in the same month the previous year since April of 2022.
Median home prices have slightly increased over the last 6 months while home inventory remains low. Homeowners are hesitant to sell their homes with such low mortgage interest rates because they will have to turn around and purchase a new home with mortgage rates double what they currently have.
Median home values in Tempe have actually decreased an average of -10.2% since May of 2022. Mortgage interest rates are hovering around 6.50%, and some experts say inflation is slowing. It looks like we are approaching a more balanced housing market in Tempe that should remain that way throughout the spring.
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