Real estate prices in the Phoenix region could stay high for longer, says the economist

PHOENIX – The hot real estate market in the United States lost some of its momentum in August, but a Valley economist says it’s too early to say skyrocketing prices on Metro Phoenix have peaked.

“I wouldn’t want to call it as we climax and it sinks. Let’s wait and see, ”Rounds Consulting Group economist Jim Rounds told KTAR News 92.3 FM.

Online real estate marketplace Zillow said the median price of a home in Maricopa County was $ 410,000 in August. That’s nearly $ 100,000 more than in August 2020.

“In the case of the Arizona and Greater Phoenix markets, I wouldn’t expect any major declines any time soon,” he said.

Inventory for sale in the Valley is down 12% year-over-year, data from Zillow showed.

“This is not necessarily a bladder situation; it’s an economic inefficiency situation, ”Rounds said.

According to Zillow, more inventory is expected to become available in the next few months.

“A slightly less hectic market means buyers have a much better chance of getting the home they are bidding on, and possibly even a drop in the price of their saved listings, but keep in mind that the market is much hotter right now than normal is the year, ”said Nicole Bachaud, economic data analyst at Zillow, in a recent press release.

Annual Phoenix home appreciation was a top performer in the nation’s largest markets at 31.8%, surpassed only by Austin, Texas, at 44.8%.

Jim Cross of KTAR News 92.3 FM contributed to this report.

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