Metro Phoenix home values up nearly 30% over past year, report finds

Aug 23, 2021, 4:25 AM
(Photo by Joshua Lott/Bloomberg via Getty Images)...
(Photo by Joshua Lott/Bloomberg via Getty Images)
(Photo by Joshua Lott/Bloomberg via Getty Images)

PHOENIX — Phoenix has become the second-leading major market in the nation in housing prices with a year-over-year increase of nearly 30%, according to Zillow’s latest market report.

Home values in Phoenix rose to nearly $400,000, up 3.4% month-over-month and 29.8% year-over-year, which leads the nationwide home value rate of $298,933 by nearly 77%, the report said.

“With the economy continuing to reopen, employees receiving more long-term guidance on remote work, and as students find their way back to college campuses, the rental market is picking back up,” Nicole Bachaud, Zillow economic data analyst, said in a press release.

“As high demand puts pressure on rents and incomes are unable to keep up, affordability will become more of a challenge in the coming months.”

While experts say annual rent growth was positive in all 50 major metros for the first time since April, the average typical Phoenix rent price increased by 23.1% year-over-year to $1,746.

Average rent prices in metro Phoenix are now more than 10% higher than projected rent levels for July based on pre-pandemic trends, along with nine other major markets.

Nationally, inventory increased for the third consecutive month after falling from August 2020 to April.

In metro Phoenix, houses on the market rose 1.6% from June, however, remains down 18.8% compared to last July, the report said, with more inventory expected to appear in the market over the next few months.

Buyers might be pleased to hear the share of houses listed with a price cut was at 10%, up 2.1% from June.

As inventory signs continue to rise for the third straight month and home value appreciation decreasing in nearly half the markets, Bauchaud said, “All signs point to the likelihood that the housing market is beginning to ease off the gas pedal.”

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Lincoln Ventures, an Austin-based housing developer, broke ground on a new 24-story apartmebt build...

Groundbreaking held for 24-story downtown Phoenix apartment tower

A groundbreaking ceremony was held Tuesday for a 24-story downtown Phoenix apartment building that is projected to be open by 2023.
1 day ago
(Photo by Scott Olson/Getty Images)...
Torrence Dunham

Tucson votes to terminate city employees who aren’t vaccinated against COVID by Dec. 1

The Tucson City Council voted Tuesday afternoon to terminate city employees who aren't vaccinated against COVID-19 by Dec. 1.
1 day ago
(Photo by Mario Tama/Getty Images)...
Associated Press

US Labor Department warns Arizona, 2 other GOP states over COVID rules

The Biden administration threatened Tuesday to revoke the authority for Arizona and two other Republican-controlled states to handle their own workplace safety enforcement because they have refused to adopt rules to protect health care workers from COVID-19.
1 day ago
TAMPA, FLORIDA - FEBRUARY 07: The Weeknd performs during the Pepsi Super Bowl LV Halftime Show at R...

The Weeknd cancels tour with 2 Valley stops, teases stadium tour

Pop sensation The Weeknd on Monday announced the upcoming 2022 tour that had two stops in the Valley has been canceled, teasing a stadium tour that would commence next summer instead.
1 day ago
(Facebook Photo/Verde Valley Fire District)...

Arizona firefighter-paramedic dies of COVID-19 complications

Tyrone Bell, an Arizona firefighter/paramedic, died Monday from COVID-19 complications, the Verde Valley Fire District announced.
1 day ago
(Facebook Screenshot/Maricopa County Sheriff's Office)...
Associated Press

MCSO Deputy Juan Ruiz remembered for achieving his dream

A Maricopa County sheriff’s deputy who died after being beaten by a suspect was remembered Tuesday as man who lived his dream to protect and serve.
1 day ago

Sponsored Articles

PNC Bank

3 cool tips to turn everyday moments into learning experiences for your child

Early brain development has a crucial impact on a child’s ability to learn and succeed in school and life. Research has shown that 90% of a child’s brain is developed by age five.
Sweet James

Best fall road trips to take on a motorcycle

Autumn in Arizona brings the beauty of color-changing leaves and a relief from summer heat. It’s one of the most pleasant times to explore the outdoors, especially on a motorcycle.
Chris Kennedy

My Special Aflac Duck® taking flight in Arizona

For more than 65 years, Aflac has had the extraordinary opportunity and privilege to help provide peace of mind to individuals who have our supplemental insurance policies.
Metro Phoenix home values up nearly 30% over past year, report finds