AriZona Real Estate insider!

Even as mortgage interest rates rose, U.S. home prices hit a new record on the S&P CoreLogic Case-Shiller U.S. National Home Price Index. For the three-month period ending in June, prices nationally were 5.4% higher than in June 2023, according to data released Tuesday. While this marks an all-time high for the index, the annual gain was slightly smaller than May’s 5.9% increase.

Phoenix, with a 3.7% rise in the Case-Shiller index, finds itself in the lower-middle range for home price growth among major U.S. cities. Here’s how the numbers break down:

• Top Performers: New York (9%), Las Vegas (8.5%), San Diego (8.7%)
• Middle Range: San Francisco (4.3%), Charlotte (6.4%), Washington, D.C. (6%)
• Lower Middle Range: Phoenix (3.7%), Tampa (3.1%), Minneapolis (2%)

Phoenix’s 3.7% increase is below the Composite-20 average of 6.5%, showing that while there is still growth, it is not among the fastest in the nation.

Phoenix’s Housing Market: Slowing Down Amidst National Trends

Phoenix, once a leader in home price growth, is now seeing a slowdown. The recent 3.7% increase places it in the lower-middle range among the 20 largest U.S. metropolitan areas, compared to higher gains in cities like New York (9%) and Las Vegas (8.5%).

Why the Slowdown?

Factors like rising mortgage rates, increased inventory, and economic uncertainty are contributing to the cooling market. This shift gives buyers more choices and negotiating power, but sellers might need to adjust their expectations.

Despite slower growth, Phoenix remains a stable market. Recent data shows that while inventory has increased and sales are at their lowest since the 1970s, the market isn’t dropping. Home prices are still rising year over year, suggesting that waiting to buy could mean paying more in the future.

Overall, Phoenix’s housing market appears to be stabilizing, offering opportunities for both buyers and sellers.