The value of sold homes in the City of Phoenix has dropped $21 per-sq ft over the last 6-months. The average home that sold in November 2007 was 1,801 sq ft and cost $275,846 -- which equals $153 per sq ft. In contrast, the average sold home in May 2008 was 1,840 sq ft and cost $242,834 -- which equals $132 per sq ft. This information can be seen highlighted in yellow below:
The average price of a home dropped a corresponding $33,012 during the same time period. However, it is still more accurate to look at the price per-sq ft because the average size of "sold homes" varies from month to month. To further illustrate, multiply 1,801 (size of average November home) X $132 (current price per-sq ft) and the outcome is $237,772. What this really means is November 2007's home of 1,801 sq ft would sell today for $237,732. The net difference is $38,114 ... not the $33,012 difference between the gross sales price of November 2007 and May 2008.
Note: I use the criteria of single family homes, patio homes, and townhomes over 1,000 sq ft and under $1,000,000 to smooth out the data and eliminate the exceptionally high and very low sales. I have used this methodology for over 2.5 years so the numbers are consistent from month-to-month
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