Average Valley home prices expected to reach $517K by late 2022, experts say
PHOENIX – Home prices in metro Phoenix are still going up and real estate experts are projecting an average of $517,000 next year.
Online real estate marketplace Zillow says house hunters will face that half-million-plus hurdle by September 2022.
The company says the typical price of homes in the Valley reached $410,028 as of the end of September 2021. Last year at this time the number was $310,000.
Valley economist Jim Rounds says once interest rates start climbing, that will put additional strain on people trying to buy homes and still afford education, transportation, etc.
“Even though interest rates are low, home prices are accelerating at a faster clip,” Rounds, who runs Rounds Consulting Group, told KTAR News 92.3 FM.
“Interest rates are not going to be going down. If you’re trying to find a home and there aren’t many in your price range, then people won’t be looking, demand will go down and prices will eventually fall some.
“In the long run, everything balances out, but that’s going to take a while, which means people will struggle for the next couple of years at least.”
Rounds sees one positive.
“Those communities that continue to grow – add jobs, especially higher wage jobs – will get through this a little more smoothly.
“Greater Phoenix is one of those metros but that doesn’t mean that we don’t have an affordability problem.”