Phoenix had led the nation in home price growth for nearly three years until earlier this year, when it got bumped to second, then again to third the following month.
With a 29.7% year-over-year increase in May, Phoenix slid down to No. 4 on the S&P CoreLogic Case-Shiller Indices.
Tampa (36.1%) and Miami, Florida, (34%) took the top two spots, while Dallas came in at No. 3, with a 30.8% year-over-year price increase in May. The national index tracked a 19.7% annual gain in May, down from 20.6% the previous month.
Danny Court, principal and senior economist for Elliott D. Pollack & Co., said he’s seeing continued signs of a cooling housing market in metro Phoenix.
“There has been a substantial increase in resale listings from historically low levels, but we’re still not to a level we are used to in a balanced market,” Court said. “There are still sales closing over the listing price, but not nearly as many as we’ve seen over the last 18 months.”
While home prices for both new and resale homes are flat to slightly declining, they are still 10% higher than prices from the beginning of 2022, he said.
“Prices moderating or even declining should be a welcome sign to potential buyers and should provide some relief for our region’s growing affordability issues, but mortgage rates are the other piece to that formula,” Court said.
The latest figures show 30-year fixed rate mortgages at 5.54%, which is down from the peak at 6.28%, but still nearly double what it was a year ago, he said.
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