August 1, 2012
There has been lots of good news lately about the Phoenix Housing Market Recovery – according to a new report released Tuesday by Zillow, the Phoenix housing marketing is far outpacing anywhere else in the country.
With home values across the U.S. posting their first year-long increase since 2007, the Phoenix area home prices have increased 12.1% in the second quarter of 2011 to the second quarter of 2012. Phoenix is benefitting from high demand for homes from investors, mainstream buyers, constrained supply due to high negative equity, and resistance of sellers to sell at the market bottom.
This is, by far, the biggest year-over-year leap of any of the 167 metropolitan areas covered by Zillow’s Real Estate Market Report. Of the metro areas examined, Phoenix was among 53, or nearly one-third of the areas that posted gains from a year earlier.
The news is consistently positive across the country – on an annual basis, home values in the U.S. have increased 2.1% from the first to second quarter of 2012 to $149,300. Home values have also increased for the fourth consecutive month by 0.7%. The Phoenix housing market reported a 6% gain in home values, to an average of $136,200 in the second quarter.
Zillow’s chief economist, Stan Humphries, said that the housing market recovery indicates organic strength, as it has continued to increase despite lower-than-average job growth. “Looking forward, we expect home values to remain relatively flat as the market works through a backlog of foreclosures and high rates of negative equity.”