Phoenix housing market gained over $36B in value last year
PHOENIX — The metro Phoenix housing market gained over $36 billion in value in 2018, according to a popular real estate website.
Zillow analyzed housing market data from the last year and found that Phoenix’s market made up 71 percent of Arizona’s more than $708 billion in housing value in 2018.
The national housing market is more valuable than ever at $33.3 trillion, Zillow said.
Despite hitting its lowest point in 2012, the national housing market has gained $10.9 trillion in value and is now worth $4 trillion more than it was at the housing bubble’s peak.
The Phoenix market has not yet totally recovered, as it is still 8 percent less valuable than it was at the bubble’s peak, Zillow said.
Arizona’s housing market has gained more than $296 billion throughout its recovery from the Great Recession, making up 2.7 percent of the overall U.S. recovery gain.
The California housing market accounted for almost one-third of the national recovery gain and was worth $7.9 trillion in 2018.
Ten states’ housing markets, including Florida’s, have still not regained the value they lost in the recession.
“Seen from the rearview mirror, 2018 was a year of unusually strong, stable home value growth across the country,” Zillow senior economist Aaron Terrazas said in a press release.
“But cracks in the foundation are clearly starting to emerge. … Periods of stability often precede periods of instability, and the outlook for 2019 is certainly both cloudier and blurrier than the outlook a year ago.”
Terrazas said that while markets gained a lot of value in 2018, that doesn’t mean recovery is complete.
“Housing wealth may have touched new highs this year, but home value gains don’t translate into dollars in the bank account unless homeowners opt to sell or borrow against their home and, in contrast to previous housing booms, many Americans have been more reluctant in recent years to spend against their home’s worth,” he said.
“Moving toward an uncertain future, that may prove to be a prescient choice.”