The real estate market is still hot across the entire United States, and Phoenix is certainly no exception. But just how hot is the Phoenix housing market to begin 2022? We’ll provide statistics directly from the Arizona Regional Multiple Listing Service (commonly known as the “MLS”) through the end of December 2021 in this installment of our Monthly Phoenix Real Estate Market Update.
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2021 set a new record with the highest total sales in any year — 110,486! The previous high was set in 2020 with 105,376 followed by 2005 with 104,133. Additionally, from 2000 to 2020 we’ve experienced only five months with sales over 10,000. However, there were three months in 2021 alone with over 10,000. They are March, April, and June. Also of note: five more months had sales in the 9,000+ range in 2021.
For a perspective, monthly housing inventory has averaged 14,409 listings over the three years of 2018-2020. They averaged 16,599 over the last five years and 18,781 over the last 10 years. However, four months (March through June 2021) each began with less than 5,000 MLS listings. That’s about 31% of normal. Though listings peaked at 7,649 in October, they began the new year of 2022 at 5,644.
***Revised to reflect 2019-2021*** The updated averages (after a complete 2021) are now: 10,762 listings over the last three years, 13,592 over the last five years, and 16,811 over the last 10 years.
Most cities in the Metro Phoenix area turned over housing inventory at a rate of two to three times per month in 2021.
Price Per-Square Foot (PPSF)
December 2021’s average price per-square foot was $267.80. That’s an incredible $56.70 more than the previous year in December 2020 when it was $211.10. For another perspective, the average price per square foot for all 12-months of 2021 was $247.50. The average PPSF for all 12-months of 2020 was $193.70. That’s a 27.8% year over year increase!
Highest & Best Offers
57.5% of all home sales in 2021 closed between the $300,000 to $600,000 price range. These homes sold for an average of $6,590 more than their original list price. The highest “over-list” sales prices occured in July @ $13,530 and June @ $12,003. FYI, across all prices ranges in 2021, the average listing sold for $2,594 more than it’s list price.
In contrast, 5.6% of properties sold for over $1,000,000 in 2021. $1,849,773 was the average purchase price which was -$36.463 less than list price.
Distressed sales (foreclosures and short sales) are still at historic lows. There were only 14 bank sales and 2 short sales in December 2021. They accounted for a mere 00.17% of sales. Additionally, there were only 279 distressed sales in all of 2021. That’s just 00.25% of the 110,486 annual sales. Over the last two years distressed sales have accounted for under 1% of all sales. However, and even if distressed sales increase because of COVID-19 mortgage delinquencies, housing inventory is so low they will probably be absorbed near retail value.
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Monthly Phoenix Real Estate Market Update links:
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