(Photo courtesy of Visit Phoenix, photo by dspaz.com)

Median sales price for homes in Phoenix hits $400,000

June created the perfect trifecta for a hot housing market: June home sales and prices both set report records, while inventory grew for the first time in 15 months. The record-setting industry saw the median sales price for homes in Phoenix hit $400,000, a 30.1% year-over-year increase.

The month of June, typically the biggest month of the year for home sales, saw sales soar 14.2% over a strong May and top all other months in the 13-year history of the report, which spans 53 metro markets. The Median Sales Price of $336,000 was also a report record, eclipsing the previous record of $320,000 – set in April and tied in May – by 4.9%.

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 The number of homes for sale, meanwhile, grew 1.9% over May – the first increase since March 2020. Inventory, however, still remained 37.5% below June 2020 levels.

“June saw a unique case of supply and demand rising in unison, thanks to an uptick in sellers listing their homes for sale – a very welcome sign for frustrated buyers,” said Nick Bailey, President, RE/MAX, LLC. “People are relocating as companies and individuals make long-term decisions about remote work and getting back to the office. Also, sellers appear to be more confident about finding another home after they sell their current one. If these trends continue, inventory levels should keep growing.”

With year-over-year comparisons skewed by the pandemic, May-to-June averages for 2015-2019 are helpful in illustrating what’s typical at this time of year. June has been the top month for home sales in four of the past six years:

• June 2021 home sales increased 14.2% month over month, more than doubling the 6.4% average gain from May to June in 2015-2019. Year over year, sales were up 26.4%.

June’s Median Sales Price of $336,000 was 4.9% over May’s, very similar to the typical May-to-June increase of 4.6%. Year over year, June’s price is 21.9% higher than June 2020’s $275,000.

The 1.9% increase in inventory from May to June was far greater than the typical gain of 0.6%. Still, inventory was down 37.5% year over year.

June’s average Days on Market of 24 was four days less than May’s and represented a faster sale by 21 days compared to June 2020. June’s 1.1 Months Supply of Inventory compares to 1.2 in May and 2.2 year over year.

Highlights and the local markets leading various metrics for June include:

Median Sales Price – Median of 53 metro median prices

In June 2021, the median of all 53 metro Median Sales Prices was $336,000, up 4.9% compared to May 2021, and up 21.9% from June 2020. Fifty-one metro areas increased year-over-year by double-digit percentages, led by Boise, ID at +38.0%, Augusta, ME at +34.7%, and Phoenix, AZ at +30.1%. No metro areas saw a year-over-year decrease in Median Sales Price.

Closed Transactions

Of the 53 metro areas surveyed in June 2021, the overall average number of home sales is up 14.2% compared to May 2021, and up 26.4% compared to June 2020.  Leading the year-over-year sales percentage increases were Honolulu, HI at +92.3%, New York, NY at +80.6%, and Miami, FL at +78.4%.

Months Supply of Inventory – Average of 53 metro areas

The number of homes for sale in June 2021 was up 1.9% from May 2021 and down 37.5% from June 2020. Based on the rate of home sales in June 2021, the Months Supply of Inventory decreased to 1.1 compared to 1.2 in May 2021, and decreased compared to 2.2 in June 2020. A six months supply indicates a market balanced equally between buyers and sellers. In June 2021, of the 53 metro areas surveyed, zero metro areas reported a months supply at or over six. The lowest Months Supply of Inventory was a five-way tie among Albuquerque, NMRaleigh-Durham, NCManchester, NHDenver, CO; and Seattle, WA at 0.5.