As far as U.S. cities go, Phoenix remains one of the cheaper places to buy a home, but it’s gaining on its peers.
The median price for an existing home in the Phoenix area reached $399,900 in June, according to the Wall Street Journal. That’s 31.1 percent higher than in June 2020.
The median is still more than $100,000 below the median existing home price in similar cities, such as San Francisco, Los Angeles, and Portland — one reason why so many people want to buy there.
“When people come here from Seattle and Portland, they are thrilled at what they can buy,” Lennar Corp.’s Alan Jones said. “And from California, they go beyond being thrilled.”
The growth in pricing has not only been strong, but consistent. Phoenix has posted the strongest annual growth in pricing among 20 cities studied for the 23 months ending in April, per the S&P CoreLogic Case-Shiller Composite Home Price Index.
That is just behind Portland’s record 24-month streak from 1990 to 1992. The index reports on a two-month delay and does not include some other cities seeing strong growth, however, like Austin and Boise.
Phoenix saw a 22.3 percent year-over-year price increase from April 2020 to April 2021, edging out San Diego and Seattle for the dubious distinction of fastest-growing home prices in the index.
San Diego home prices increased 21.7 percent year-over-year, while Seattle’s experienced 20.2 percent growth.[WSJ] — Dennis Lynch