Phoenix home price growth reached a whopping 20% in March, leading the nation for the 22nd consecutive month, according to the latest results of the S&P CoreLogic Case-Shiller Indices.
With the national average now 13.2%, San Diego came in second, with a year-over-year price gain of 19.1%, followed by Seattle with an 18.3% increase that month.
The competition for the relatively few homes on the market shows no signs of slowing down as summer approaches, said Matthew Speakman, an economist for Zillow Group Inc.
“We expect Phoenix to continue to be a booming destination further accelerating trends we saw coming into 2021,” Speakman said. “Places like Phoenix are migration magnets thanks to relatively affordable, family-sized homes, a booming economy and sunny weather. Record-low mortgage rates and the increased demand for living space, coupled with a surge of millennials buying their first homes, will keep the pressure on home prices there for the foreseeable future.”
The S&P CoreLogic Case-Shiller’s national composite 13.2% gain was last exceeded more than 15 years ago in December 2005, and sits very comfortably in the top decile of historical performance, said Craig J. Lazzara, managing director and global head of Index Investment Strategy at S&P Dow Jones Indices.
In March, home prices in metro Phoenix averaged $470,200, up 24.8% year over year, while the median sales price was $359,300, up 18.8% year over year, according to Arizona Regional Multiple Listing Service.
“Homebuilders prices reflect their costs and their optimism for the near term future of demand in this market place,” Daniel said. ” An expectation of lower prices in Phoenix for housing may be some time in coming as long as job and population growth feeds the demand side of the market equation. Some softness in land prices may be the first sign of a slowdown in price increases.”