Where do we go from here? Phoenix home price growth reaches record high

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Posted at 8:34 AM, Oct 27, 2021
and last updated 2021-10-27 11:34:47-04

Once again, metro Phoenix topped the nation in home price growth — at a whopping 33%.

S&P Dow Jones Indices released the latest results of the S&P CoreLogic Case-Shiller Indices Tuesday, putting Phoenix at the top of the nation in the highest year-over-year gains through August with a price increase of 33%. Meanwhile, the national index saw a 19.8% increase.

Following behind Phoenix in year-over-year growth in August were San Diego, at 26.2%, and Tampa, Florida, at 25.9%.

This is the Valley's 27th consecutive month leading the nation in home price growth, said Steven Hensley, advisory manager for Zonda housing market research firm.

"The continued rising home prices in the Phoenix MSA, while good for existing homeowners, is continuing to disrupt lower income households and first-time homebuyers," Hensley said. "Affordability remains a key concern moving forward, particularly if — when — mortgage interest rates rise at an accelerated rate. Price appreciation in recent months has slowed, reflecting increasing resale supply. It is likely that home prices in the Phoenix MSA will appreciate at more moderate levels over the next several months."

Read more of this story from the Business Journal.