Metro Phoenix Home Prices Hit New Record. Here’s What you Can Expect Next

Article originally posted on AZ Central on August 20, 2021

Phoenix-area home prices hit another record in July, though some relief for buyers could be coming.

The Valley’s median home price climbed to $405,000 last month, according to the Arizona Regional Multiple Listing Service. That’s up from about $400,000 in June and $315,000 in July 2020.

But the area’s median is expected to dip back down to $400,000 during August based on pending sales.

Metro Phoenix’s heady population growth propelled its housing market, even during the pandemic. Phoenix drew a higher percentage of new residents than any other major U.S. city between 2010 and 2020, according to the latest census data released last week.

But a dip in home sales and an uptick in the number of houses for sale is working to cool the hot housing market a bit now.

Valley home sales dropped by almost 10% in July from June, and listings climbed almost 7%.

Sellers still have the upper hand because the supply of Phoenix-area homes for sale is down 17% from last year, say housing market experts.

ARMLS’s Information Market housing analyst Tom Ruff said the Valley has been in a seller’s market since 2015 because of a shortage of listings.

“While we talk about rising prices and low interest rates, the one topic that continues to impact our market the most is supply,” he said. “History tells us our market will return to balance at some point. My best guess is simple economics will cause the shift. Rising prices will encourage sellers while having the opposite effect on buyers.”