Phoenix-area housing prices could stay high for while longer, economist says
PHOENIX – The hot housing market across the United States lost a bit of steam in August, but a Valley economist says it’s too soon to say metro Phoenix’s skyrocketing prices have peaked.
“I wouldn’t want to call it as we’re peaking and it’s coming down. Let’s wait and see,” economist Jim Rounds of Rounds Consulting Group told KTAR News 92.3 FM.
Online real estate marketplace Zillow said the average price of a house in Maricopa County in August was $410,000. That’s nearly $100,000 higher than August 2020.
“In the case of the Arizona market and greater Phoenix, I wouldn’t expect to see any major declines anytime soon,” he said.
For-sale inventory in the Valley, year-over-year, is down 12%, data from Zillow showed.
“This isn’t necessarily a bubble situation; it’s an economic inefficiency situation,” Rounds said.
Zillow said more inventory was expected to become available over the next few months.
“A slightly less frenzied market means buyers have a much better chance to land the home they’re bidding on, and may even see a price drop on their saved listings, but keep in mind the market is still much hotter than normal for this time of year,” Zillow economic data analyst Nicole Bachaud said in a recent press release.
Annual home value appreciation in Phoenix was among the leaders in the country’s largest markets at 31.8%, bested only by Austin, Texas, at 44.8%.
KTAR News 92.3 FM’s Jim Cross contributed to this report.