By Mike Bodeen · 6 December 2021
Well, let’s just say it – Arizona, and Phoenix in particular, are extreme!
Yes, we all know about our extreme summers, the radically high summer temps, but thankfully, radically low summer humidity, and heavenly in between.
Our baseball team, the locally legendary Diamondbacks this summer set the modern-day baseball record for consecutive road losses at 23! On the other hand, the Phoenix Suns just set a team franchise record of 18 consecutive victories this year.
But when it comes to real estate, the Phoenix Metropolitan residential real estate market may be in a class by itself.
According to the respected S&P CoreLogic Case-Shiller index, in September, Phoenix reported the nation’s highest year-over-year (YOY) price gain at 33.1%. The nation also reported huge YOY gains at 19.8%.
For the same Index, Phoenix owns the national record for consecutive months of home price appreciation, now at 28 months.
Do you think something’s happening here?
This home price appreciation, when expressed in dollars, looks formidable for buyer wanna-be’s but a financial blessing to homeowners. Let’s look back at this more closely:
First off, prior to this last year, Phoenix-Metro had an incredible upward appreciation period in 2004-2005
Especially note February 2005 to June during the same year:
But what went up also had an equally extreme downhill run in 2004-2005:
And now, let’s look at our current run, which presently seems to have no ceiling.
This however is an illusion. Prices will settle in, settle down, or fall down. Prices do have a ceiling. It’s disconcerting however, to think that we may not be close to that yet. Huge gobs of corporate cash and neighboring state migration continue to muddy the buying waters.
Wanna-bes need to become better-be’s – and soon!
With continuing thanks to The Cromford Report for all our statistics.
Market data referenced in this article comes from The Cromford Report.