Zillow: Housing market increasing at fastest pace since 2006

PHOENIX — Home values are rising at their fastest pace in 12 years, according to a Zillow report.

The median value of a home in the Phoenix area rose to $253,100, an 8.6 percent increase from last year.

This was right on par with the national average, an increase of 8.7 percent since last April. The median value is $215,600.

That was best the pace of appreciation since June 2006.

The Escalante neighborhood in Tempe has the fastest growing value in the Valley. Home prices increased by 17.5 percent from last year, up to $183,800.

Mesa Grande is next at 16.9 percent growth.

This is followed by Historic Avondale (16.2 percent growth), Community Fiesta in Mesa (14.1 percent) and Encanto in Phoenix (13.4 percent).

Zillow senior economist Aaron Terrazas cited several reasons for the housing market increase, including “sluggish” construction tax cuts and millennials.

“Americans are also in a spending mood, boosted by recent tax cuts and rising wages,” Terrazas said in a press release. “Millennials who long delayed becoming homeowners, are out in force – a shift we’re also seeing in softer rent appreciation.”

Despite this growth, home values remain 10.9 percent lower than they were during the housing bubble peak.

Cities including Seattle, Dallas-Fort Worth, Atlanta and San Francisco saw growth above 10 percent.

San Jose, Calif. had the highest growth of any city studied at 26.2 percent. The average home value eclipsed $1.26 million.

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