According to data provided by the Arizona Regional Multiple Listing Service (ARMLS), the median sales price is up 28% year-over-year–the median sales price is now $460,000. Inventory has climbed dramatically over the past 30-45 days and since last month, housing inventory is up over 30%! Let’s dig into our Phoenix metro real estate report for May of 2022.
As of May 30, there are 9468 active listings with 1022 “coming soon” and 10,600 pending sales. Since May 1, there have been 7841 sales with an average days on market of only 26. Here are some other key MLS stats:
- Average dollars per square foot obtained at sale $432
- Average list to sale price ratio: 1.02
- Average sale price: $591,666
Housing demand is up approximately 17% from the same time last year while inventory is down over 70%–so, while there has been a huge jump in available homes, higher than normal demand could continue to drive prices up–this according to the experts. We believe that inventory could continue to climb over the next few months and this, combined with rising home loan rates, will cause home prices to decline.
This chart shows how the average sale price has increased over the past two years:
This chart shows how the number of pending listings has changed since 2020:
So what’s next for the Phoenix metro area? With mortgage rates above 5% and inventory rising fairly rapidly, we believe that demand will still be good, but will begin to slow down over the next two to three months. Arizona is a popular destination for those relocating from other parts of the country and with new home builds down 12% from the same time last year, we should see decent buyer activity in the short term. Some experts are predicting a crash while others feel bullish about the Arizona economy. Thanks for reviewing our Phoenix metro real estate report for May 2022.