Home prices continue their aggressive climb in metro Phoenix.
That is starting to impact demand and the volume of home sales, according to Steven Hensley, advisory manager for real estate research firm Zonda.
Hensley said the median price for a new home stands at $424,000, according to Zonda’s latest data.
That is up from $325,000 a year ago.
Hensley said the prices for existing homes in the Valley is also up $100,000 over the past year and stands at $395,000.
Hensely said new home prices are up 13% in metro Phoenix over the first four months of 2021.
“That’s really remarkable to see something like that,” Hensley said.
He said home values could appreciate as much as 20%.
Hensley said the volume of new homes sales was down 16% in June compared to May, according to Zonda.
Some of that drop stems from a traditional seasonal slowdown with Phoenix’s intense summer heat.
But Hensley said the run-up in prices since last year is pricing some buyers out of the market.
“People are getting priced out. There is no doubt about that,” Hensley said.
The continued influx of new residents into Arizona from California, the East Coast and Pacific Northwest (all of which have high housing costs) could keep spurring demand even with some local buyers on the sidelines.
Hensley said the Valley has posted 2,000 new home sales or more nine of the last 12 months.
“It’s healthy,” he said. “Demand is still there.”