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.
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.