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What Phoenix home price growth means for first-time homebuyers, homebuilders, investors

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Posted at 8:44 AM, Mar 30, 2022
and last updated 2022-03-30 11:44:04-04

For the 32nd consecutive month — more than 2.5 years — metro Phoenix once again has the highest home price gain in the nation, according to the latest S&P CoreLogic Case-Shiller Indices.

With a year-over-year price increase of 32.6% in January, Phoenix topped the nation, followed by Tampa, with 30.8%, and Miami, with 28.1% gains, according to the report released March 29. The national average was a 19.2% gain.

This top ranking was propelled by ever-increasing amounts of net domestic migration, abundant job opportunities and too little supply, said Thomas Brophy, research director for Colliers International.

"All eyes are now on the Federal Reserve, who recently announced interest rate increases to combat inflation and the US 10 Year Treasury, a large determiner of mortgage rates, which has increased over 70 basis points since March 8," he said.

Jim Daniel, president of RL Brown Housing Reports, said home prices in metro Phoenix for both new and resale homes continue to increase each month.

The average price of a new home in Phoenix in February 2022 was $546,848, up from $440,321 in February 2021, based on his research of recorded escrow closings of new and resale homes, which he said may differ from the Case-Shiller index results.

Read more of this story from the Phoenix Business Journal.