Phoenix saw a 6.2 percent increase in home prices in April compared to the previous year as nationwide housing prices rose 5.3 percent for the month, according to an FNC Inc. report. Home prices have continued to rise through the year, according to the FNC report, with Phoenix seeing a 1.6 percent price increase in March to April home prices.
Low supply of entry to mid-level homes and low interest rates led to the price increases across the country and in Phoenix, said Yanling Mayer, director of research with FNC Inc. The report noted all levels of home prices have increased, but the entry to mid-level home prices have seen the biggest gains, Mayer said.
Arizona State University housing expert Michael Orr released a similar report on April housing prices, which noted a 5.1 percent April increase in median housing prices in the Valley. Orr pointed out that home buyers who foreclosed after the market crash and have since repaired their credit have been re-entering the market, leading to higher demand and higher prices.
Mayer said the prices could continue to climb through the year as folks may hope to buy a home before potential interest rate hikes while supply remains low through the year.
Home prices have seen appreciation rise faster in the Western and Southern region of the U.S. as home prices have lagged in the Northeast and Midwest, the report found.
Places like Chicago and New York have seen less price appreciation because there has been an elevated number of foreclosure sales in those areas, Mayer said. Phoenix has seen fewer foreclosures in the last two years, she said, and has reached stable low levels.
By: Jesse A. Millard Phoenix Business Journal