PHOENIX — The Phoenix metro is closing in on two uninterrupted years with the fastest-rising home prices in the nation, according to the latest S&P CoreLogic Case-Shiller Indices.
The Valley’s home prices jumped 22.3% year-over-year in April — more than 2% higher than their rise in March [bizjournals.com]. That's the 23rd straight month Phoenix has led the nation in the report.
Just behind Phoenix were San Diego and Seattle, which respectively saw year-over-year increases of 21.6% and 20.2% in April. These three leading cities exemplified the strength of prices in the West, which led the nation with prices up 17.2%. In the Southwest in particular, prices were up 16.9%.
Matthew Speakman, an economist for Zillow Group Inc. (Nasdaq: Z), said he sees little evidence that forces behind home price growth in Phoenix and other places will abate any time soon.
“Mortgage rates remain near historic lows, a demographic wave of households aging into prime homeownership years continues to swell, and despite showing some signs of bottoming, the number of available homes for sale remains historically small, particularly given the elevated demand for housing,” Speakman said. “… What’s more, despite sharply rising prices, demand for homes remains very strong. Bidding wars for the relatively few houses available remain common and homes are going under contract at an increasingly fast pace.”