Phoenix Property Market Cools: Average Sale Price Per Square Foot Falls to $286 in April 2024

This article provides a detailed overview of the Phoenix real estate market, including trends in prices and sales, comparisons with neighboring cities, and insights for buyers, sellers, and investors.

authorWritten by Manuel MartinezMay 17, 2024

The Phoenix real estate market has shown noteworthy shifts over the last year in house values per square foot. A decline in these values suggests an easing in the market, with April 2024 seeing an average sale price per square foot of $286, falling from $276 in May 2023. This trend indicates a decrease of roughly 4% across the period, a significant figure for investors and homeowners alike. Additionally, the average sale price in January 2024 spiked to $424,154, which implies a potential seasonal high at the beginning of the year. Understanding these trends can be helpful when deciding the best times to buy or sell in the area.

Here is how the market in Phoenix has moved compared to last year

May 2023 April 2024 Change
Median Listing Price $550K $438.5K -20.27%
Median Sold Price $419.3K $438.5K 4.58%
Homes For Sale 1,089 107 -90.17%
Homes Sold 14,252 12,418 -12.87%

Comparing Phoenix to its wealthier neighbor, Paradise Valley, we see a pretty large contrast in the overall housing market. Phoenix’s average property value in April 2024 stands at half a million with a per square foot value of $299. In contrast, Paradise Valley’s average property values sit at $5,425,000 and a per-square-foot value as high as $802.

The number of recently sold homes peaked September 2023 with 14,922 properties changing hands, a high point that significantly decreased by April 2024 to 12,418.

Comparative Analysis with Nearby Cities

Make sure to read our previous market report on Phoenix.

The downward trend observed in Phoenix mirrors other nearby cities such as Glendale and Tempe. Glendale, with an average property value of $505,000 and a per square foot sale price of $249 in April 2024, also experienced a decrease in average sold price over time. Tempe’s market trends are slightly different, with a $600,000 average property value and a $303 per square foot sale price in the same month.

Sale prices per square foot value dipped in these cities, aligning with Phoenix’s market behavior and reinforcing the concept of a regional trend. Glendale’s per square foot sale price dropped from $261 in April 2024, and Tempe’s sale price dwindled by about $303, which, although showing a decline, still retains a higher rate compared to Phoenix.

Phoenix outpaced both Glendale and Tempe in terms of sold property count, with 12,418 houses sold in Phoenix compared to Glendale’s 2,835 and Tempe’s 1,300.

Understanding the Current Phoenix Real Estate Market

As of April 2024, Phoenix’s average property value holds at $500,000 with a per square foot value of $299. The total properties sold count is considerable at 12,418, but it shows a decrease from previous high sale months, potentially signaling a shift in market dynamics.

Interestingly, the average sale price of Phoenix homes stands at $438,532, which falls below the average listing price, suggesting that buyers may be negotiating lower prices or that sellers are pricing homes more aggressively to attract offers in a cooling market.

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