Falling steadily, Phoenix didn't even make the top three metros in home price growth in May, according to the latest S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index released on July 26.

Phoenix had led the nation in home price growth for nearly three years until earlier this year, when it got bumped to second, then again to third the following month.

With a 29.7% year-over-year increase in May, Phoenix slid down to No. 4 on the S&P CoreLogic Case-Shiller Indices.

Tampa (36.1%) and Miami, Florida, (34%) took the top two spots, while Dallas came in at No. 3, with a 30.8% year-over-year price increase in May. The national index tracked a 19.7% annual gain in May, down from 20.6% the previous month.

The extraordinary growth and increase in home prices was not sustainable, said Aaron Carter, associate broker for CarterMosier Group at HomeSmart Elite.

"We've had one of the longest periods of home price increases with a strong seller's market," he said.

More houses on the market

Within the past 17 weeks, the supply of active listings in Maricopa County increased by 298%, Carter said.

"This should mean more options for home buyers, but the interest rate volatility has scared traditional buyers from making offers," he said. "Buyers are now cautiously watching the market as sellers reduce prices. So it's a waiting game."

Danny Court, principal and senior economist for Elliott D. Pollack & Co., said he's seeing continued signs of a cooling housing market in metro Phoenix.

"There has been a substantial increase in resale listings from historically low levels, but we're still not to a level we are used to in a balanced market," he said. "There are still sales closing over the listing price, but not nearly as many as we've seen over the last 18 months."

Impact on buyers

While home prices for both new and resale homes are flat to slightly declining, they are still 10% higher than prices from the beginning of 2022, Court said.

"Prices moderating or even declining should be a welcome sign to..."


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By Angela Gonzalez -Senior Reporter, Phoenix Business Journal

Jul 26, 2022