Demand Pushes Valley Year Over Year Home Price Gains to #1

By Angela Gonzales | Phoenix Business Journal

Once again, Phoenix has reported the highest year-over-year gains in home price growth, well ahead of other key U.S. cities.

With a 9% year-over-year gain in May among 19 cities measured by the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, Phoenix was followed by Seattle, at 6.8% and Tampa, Florida, at 6% growth. The national average was a 4.5% annual gain, down from 4.6% in the previous month.

Phoenix-area housing demand continues to skyrocket, while supply languishes, said Jim Belfiore, founder of Phoenix-based Belfiore Real Estate Consulting.

“The perfect storm is here, and with mortgage interest rates so low, buyers should expect home prices to continue to rise unabated,” Belfiore said.

Inventory continued its downward trend to 1.5 months of inventory, with less than 25% of current listings priced at $300,000 or less, said Thomas Brophy, national director of research and analytics for Colliers International.

Even despite the surge in prices, the average home sales price in the Valley in June was $305,000 — about $70,000 less than the national average sales price — while the median price was $368,600, according to the Arizona Regional Multiple Listing Service.

Demand has never been higher, Brophy said,

“Not only is demand accelerating, and this is true across both single and multifamily product types, but mortgage rates have continued to remain at or near all-time lows,” he said.

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