Expert: An uptick in home prices could push potential buyers to rent

PHOENIX — Phoenix home prices are steadily rising at a 6 percent clip since 2016, according to a new report.

The Phoenix Business Journal reported the year-over-year growth through October of last year, though local home appreciation was behind other metro areas.

Phoenix was compared to 20 metro areas and part of the steady growth.

S&P Dow Jones Indices Chairman David M. Blitzer said it’s no coincidence housing prices are rising.

“Home prices continue their climb supported by low inventories and increasing sales,” said Blitzer in a press release.

“Nationally, home prices are up 6.2 percent in the 12 months to October — three times the rate of inflation.

“…Since home prices are rising faster than wages, salaries and inflation, some areas could see potential home buyers compelled to look at renting,” the press release said.

Seattle climbed to 12.7 percent year-over-year growth — the most in the nation. Las Vegas saw a 10.2 percent year-over-year growth while San Diego came in third in the nation at an 8.1 percent growth.

Homebuilders have been focused on higher-priced housing, potentially freezing out potential buyers of more modest incomes.

In October, the Associated Press reported sales of new U.S. homes jumped last month to the highest level for the past 10 years.

The Associated Press contributed to this story. 

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