The latest MLS data released by ZipRealty revealed that Phoenix median home prices are up more than any other market nationwide on a year-over-year basis.
Coming in at a close second was the Silicon Valley, while Tampa took third.
Phoenix median home prices jumped 36% from $116,000 to $158,000 in one year, November to November.
Lanny Baker, president and CEO of ZipRealty, said there are likely a few factors contributing to this surge, including smaller housing inventory, lower unemployment rates, steady population gains and increased investor activity.
“Phoenix saw a strong run-up in housing prices from 2004 through 2006,” says Daniel Leboffe, director of agent development at ZipRealty. “It was one the hardest hit areas during the Great Recession, resulting in a strong spike in foreclosures and short sales. Now, a number of these cities within Greater Phoenix are seeing some of the biggest rebounds.”
Many buyers, especially first-time buyers, are being priced out of the existing market and looking to newly built properties. Because of this, developers are acquiring tracts of land to build.
“As the local economy strengthens and as newly built homes come to market easing relatively low levels of resale homes, more people should have the ability to purchase a home in Phoenix, in spite of still-tight underwriting standards being implemented by the lending community,” added Leboffe.