ARIZONA NEWS

Average Valley home prices expected to reach $517K by late 2022, experts say

Oct 18, 2021, 8:00 AM | Updated: 10:46 am

(Photo by Justin Sullivan/Getty Images)...

(Photo by Justin Sullivan/Getty Images)

(Photo by Justin Sullivan/Getty Images)

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.”

We want to hear from you.

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

Arizona News

Revel Surf at Cannon Beach in Mesa is looking to fill more than 80 positions....

Kevin Stone

Revel Surf water park at Mesa’s Cannon Beach holding job fair ahead of opening

Revel Surf, the water park at the center of the long-awaited Cannon Beach development in southeast Mesa, is looking to fill dozens of jobs as it prepares to open.

38 minutes ago

HonorHealth announced Wednesday it has agreed to take operational control of multiple Valley hospit...

Danny Shapiro

HonorHealth to take control of multiple Valley hospitals from Steward, including St. Luke’s

HonorHealth announced Wednesday it has agreed to take operational control of multiple Valley hospitals under the Steward Health Care shield, including St. Luke's Behavioral Hospital.

3 hours ago

Top election officials from swing states Arizona and Michigan on Wednesday pleaded for more federal...

Associated Press

Top election officials from Arizona, Michigan ask for more federal money but say voting is secure

Top election officials from swing states Arizona and Michigan on Wednesday pleaded for more federal money for election infrastructure.

5 hours ago

A suspect accused of murdering his stepfather in Tempe before being shot by an officer will be char...

KTAR.com

Suspect to be charged in murder of stepfather in Tempe after release from hospital

A suspect accused of murdering his stepfather in Tempe before being shot by an officer will be charged after his release from the hospital, authorities said Wednesday.

6 hours ago

car crash in late August caused injuries leading to death of young Phoenix mother...

KTAR.com

Young mother dies 2 weeks after multivehicle crash in Phoenix

A car crash in late August has turned fatal. One of the injured victims died on Sept. 7, the Phoenix Police Department announced on Wednesday.

7 hours ago

Threats to Buckeye schools that have been making the rounds online this week are not credible....

KTAR.com

Threats to Buckeye schools circulating online are not credible, police say

Threats to Buckeye schools that have been making the rounds online this week are not credible, authorities said Wednesday.

8 hours ago

Sponsored Articles

...

Sanderson Ford

3 storylines to get you revved up for the 2024 Arizona Cardinals

Arizona Cardinals training camp is just a couple weeks away starting on July 25, and Sanderson Ford is revved up and ready to go.

...

Sanderson Ford

3 new rides for 3 new road trips in Arizona

It's time for the Sanderson Ford Memorial Day sale with the Mighty Fine 69 Anniversary, as Sanderson Ford turned 69 years old in May.

...

Day & Night Air Conditioning, Heating and Plumbing

Beat the heat, ensure your AC unit is summer-ready

With temperatures starting to rise across the Valley, now is a great time to be sure your AC unit is ready to withstand the sweltering summer heat.

Average Valley home prices expected to reach $517K by late 2022, experts say