By Angela Gonzales | Phoenix Business Journal
Home price growth in metro Phoenix is sinking like a lead balloon.
For nearly three years, Phoenix had led the nation in home price growth until March, when the metro dropped into second place. It’s been on a steady decline since then, dropping to No. 7 on the S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index released on Oct. 25.
Year-over-year home prices grew 17.1% in August in metro Phoenix, still tracking higher than the national gain of 13%. Miami, Tampa, both in Florida; and Charlotte, North Carolina, reported the highest year-over-year gains in August, with year-over-year price increases of 28.6%, 28% and 21.3%, respectively.
The average home price in August in metro Phoenix was $335,710, down 2.1% from July, according to the report.
Increasing interest rates continue to impact the home sales market as inventory levels increase in metro Phoenix, said Thomas Brophy, research director for Colliers International.
“According to ARMLS (Arizona Regional Multiple Listing Service) September stats, months’ supply of inventory hit 3.57. While well off the 0.89 months witnessed in March, Phoenix is moving toward a more normalized 4-to-6 month supply last seen in January 2019,” Brophy said.
“Monthly sales, currently 6,328, have increased a modest 6% off July’s low of 5,962 which suggests that some buyers, perhaps responding to seasonality, are moving back into the market,” Brophy said. “Nonetheless, all eyes are firmly affixed on the Fed and whether they will continue with their previously announced intent to continue raising rates to combat inflation.”
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