City hit hard by housing crisis makes its comeback
Phoenix’s homeownership rate increased to 63.4% in the second quarter, surpassing the national average from the first time since 2010, according to the Second Quarter 2016 Economic and Single-Family Housing Market Outlook Report for Phoenix released by Ten-X, an online real estate transaction marketplace.
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(Source: Ten-X, U.S. Census Bureau)
“Phoenix continues its remarkable recovery from the volatility of the housing market boom and bust cycle, where it was one of the hardest hit cities in the country,” Ten-X Executive Vice President Rick Sharga said.
“The city’s strong underlying economic fundamentals, high employment, growing wages and increasing population, bode well for continued growth in the housing market,” Sharga said.
Existing home sales in the city increased 12.5% from last year to 123,600 during the second quarter, according to the report. This is a new cyclical peak, and passed up the national average for the first time since early 2015.
While home sales are increasing, available inventory remains tight even after an increase of 7.2% from last year. New home construction remained weak, with both housing starts and permits down on a year-over-year basis, and lagging well below historical levels.
Home price appreciation slowed, but continues to increase in the metro. In the second quarter the median home price in Phoenix increased 8.4% from last year to $222,194.
“Compared to other major metropolitan areas, Phoenix real estate remains relatively affordable, even as prices continue to rise,” Sharga said.