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Why Phoenix is only No. 8 among Zillow's 10 hottest housing markets

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Posted at 1:45 PM, Jan 18, 2022
and last updated 2022-01-18 15:45:22-05

PHOENIX — While it's no surprise that Phoenix would make Zillow Group Inc.'s 10 hottest housing markets of 2022, it was a shock to see the rapidly growing metro fall from No. 2 last year to No. 8 this year.

With a typical home value of $422,463 in metro Phoenix, Zillow forecasts home values to rise 20% through November 2022 in metro Phoenix.

The hottest markets index for 2022 is based on several factors, starting with Zillow's (Nasdaq: Z) model for predicted price growth.

Phoenix ranked No. 2 for price appreciation in 2021 when Zillow's home value index showed typical homes rising 32.4% in metro Phoenix, said Jeff Tucker [bizjournals.com], senior economist for Zillow.

"There are a couple reasons we predict slower price appreciation ahead for Phoenix," Tucker said. "One is pure mean reversions: the last year of very fast price growth has made Phoenix a less attractive destination for many movers."

Zillow recently conducted a research project in collaboration with Allied Van Lines that found Phoenix dropped from the No. 1 to No. 8 spot for net inbound interstate moves at the same time that inbound movers saw their ZIP code level price savings all but evaporate, he said.

Read more of this story from the Business Journal.