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 February 2022 in this installment of our Monthly Phoenix Real Estate Market Update.
February 2022 had 8,001 home sales which is the 2nd highest February on record. Only February 2021 had more sales at 8,028 — just a 27 home difference.
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, of the 21 years from 2000 to 2020 we’ve experienced only five months with sales over 10,000. However, there were three months in 2021 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.
March 2022 began with 4,345 active listings — the 2nd lowest ever recorded on the AZ Regional MLS. The only month that began lower was April of 2021 with 4,293.
We personally track active housing inventory and compare it against a 3-year monthly average. Note how listings have been steadily declining in the Metro Area:
- 10,762 average monthly listings over the three year period of 2019-2021
- 14,409 average monthly listings over the three year period of 2018-2020
- 17,263 average monthly listings over the three year period of 2017-2019
4,345 homes for sale to begin March is only 40% of the 2019-2021 average inventory levels.
Our monthly Phoenix Real Estate Market Update reports most cities are turning over housing inventory at a rate of two to three times per month during 2021-2022. February was more of the same. Inventory is being sold almost as fast as it comes on the market. The average days on market (from MLS listing to close of escrow) in February was 34.
Price Per-Square Foot (PPSF)
February 2022’s average price per-square foot was $284.68. That’s $10.11 more than in January 2022. It’s also an incredible $56.82 more than the previous year in February 2021 when it was $227.86. 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 from 2020 to 2021!
Highest & Best Offers
61.7% of all homes sold in February 2022 closed in the $300,000 to $600,000 price range. They sold for an average $4,359 more than list price.
Perspective: 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 2021 @ $13,530 and June 2021 @ $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 11 bank sales and 1 short sale in February 2022. They accounted for a mere 00.15% of total 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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