Despite softening housing demand, no slowing down Phoenix home price growth

House Sold Sale Sign
Posted at 8:56 AM, Jul 29, 2021

PHOENIX — Despite a bit of softening in housing demand and a small uptick in the housing supply, home price growth in metro Phoenix continues to top the nation, according to the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index.

Phoenix led the nation with a 25.9% year-over-year price gain in May, followed by San Diego at 24.7% and Seattle at 23.4% at a time when the national gain of 16.6% set a record high.

While homebuilders and developers have been busy buying land throughout the Valley, the housing supply is still very constrained, said Thomas Brophy [], research director for Colliers International.

As of the end of June, the Arizona Regional Multiple Listing Service pegged current for-sale inventory at 1.05 months — maintaining below a 2 month supply since May 2020, Brophy said.

"Anything below three months indicates the market is experiencing inventory shortages," he said. "Shortages, most likely will continue through the remainder of the year and into early next year as homebuilders continue to ramp up production."

Read more of this story from the Phoenix Business Journal.