Report: Phoenix-area home inventory down, prices up
PHOENIX – Owning a home in the Phoenix area has become more difficult over the last year, according to a new report.
Zillow, a real estate and rental marketplace, released its March data report Thursday, highlighting that homes in and around the Phoenix area have risen in price.
According to the report, the median rent for homes in the Valley have risen by 4.1 percent to $1,364 per month, while the overall median home values rose 8.7 percent to $252,799.
The Escalante neighborhood in Tempe saw the largest growth in home values at 16.6 percent, followed by the Mesa Grande neighborhood and Historic Avondale at 16.1 percent and 15.6 percent, respectively.
Due to the rise in home values, 51 percent of the homes on the market in the Valley are considered to be at the high end level, with only 22 percent now considered entry-level.
While the prices continue to rise, the number of homes on the market continue to fall.
Compared to 2017, available inventory in the Phoenix area has dropped 13.9 percent.
The trend in Phoenix mirrors that across the U.S.
According to Zillow, the number of homes on the market has dropped almost nine percent compared to this time last year, with just 22 percent of the homes on the market considered to be affordable for the average first-time buyer and those with lower incomes.
Svenja Gudell, Zillow’s chief economist, believes the steady decline of homes available since 2015 will create one of the most competitive home-shopping seasons ever.
“This year’s home-shopping season is shaping up to be even crazier than last, and sadly, the group that will have the hardest time is first-time and lower-income homebuyers,” she said.
“These buyers will be competing for the few entry-level homes on the market, which are also the ones appreciating the fastest because of extremely high demand.”
The number of homes on the market in San Jose, Calif. was down 26 percent compared to last year, the largest decline in the U.S.
Las Vegas followed the California city with inventory down 23.5 percent since last year.