Article originally posted on Phoenix Business Journal on February 24, 2021
Once again, Phoenix topped the nation in home price growth, reporting a 14.4% year-over-year gain in December when the national increase was 10.4%, according to the S&P CoreLogic Case-Shiller Indices released today.
Thomas Brophy, director of research for Colliers International, wonders if this trend is sustainable.
“What does it mean for the people who live here, and what does it mean for the people who want to move here?” he asked.
Arizona’s residential real estate market crash in 2007 was caused by overbuilding, he said.
That’s not the case today, when housing demand far exceeds supply, Brophy said.
The 14.4% December year-over-year price gain is the highest since the 12 months ended December 2013, when the price gain was 15.3%. But it is nowhere close to the 49.3% gain recorded for the 12 months ended September 2005, according to the S&P Down Jones Indices.
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