House prices

AZ Big Media Arizona #2 for Biggest Home Price Appreciation

Arizona recorded the second-largest home price appreciation of any state between the first quarters of 2021 and 2022 at 27.5%, with only Florida having a higher figure at 29.8%.

The Federal Housing Finance Agency’s (FHFA) Housing Price Index report for the first quarter of 2022 indicated that all 50 states and the District of Columbia recorded increases in housing prices during the year, the country having recorded an increase of 18.7%.

The Mountain division saw the largest price increase over the year at 24.0%, which makes sense considering that of the top 10 states ranked by price appreciation, five were in mountain states: Arizona (2), Utah (3), Idaho (5), Montana (6) and Nevada (7).

Metro area data for all transactions (mortgage purchase and refinance) indicates that Arizona metros saw substantial house price increases during the year at 30.3% in Flagstaff, 30 .1% in Phoenix, 27.1% in Yuma, 26.8% in Lake Havasu City-Kingman, 25.5% in Prescott Valley-Prescott, 25.2% in Tucson and 23.6% in Sierra Vista-Douglas . The increase in all transactions for Arizona and the United States was 28.7% and 19.4%, respectively.

Annual inflation reached 8.6% in May, its highest level since 1981 according to the consumer price index published on June 10 by the United States Bureau of Labor Statistics. The 12-month change in consumer prices was dominated by energy costs, which rose 34.6%, although food prices also contributed, rising more than 10% for the first time in 41 years (at 10.1%). All items less food and energy increased by 6.0% per year. The seasonally adjusted monthly index rose 1.0% in May after rising 0.3% in April. Housing, gasoline and food were the main contributors to the monthly increase, although price increases were widespread. The index for all items less food and energy rose 0.6% for the month.

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For the first time in nearly 3 years, Phoenix is ​​no longer the national leader in home price growth. As for the year-over-year price increase in March, the title now goes to Tampa, Florida, which recorded a 34.8% increase. Phoenix is ​​still second in the nation with a 32.4% increase. In March, the United States as a whole recorded an annual gain of 20.6%, compared to 20.0% the previous month. The housing market does not appear to be slowing based on this data, as the Phoenix March/February percentage change was a 3.0% increase. Nationally, that number rose 2.6% according to the May 31 release of the S&P CoreLogic Case-Shiller Home Price Index.

Author: Valorie H. Rice is a senior business information specialist at the Economics and Business Research Center (EBRC) at the Eller College of Management at the University of Arizona. Student researcher Shaw Zeider contributed to this report.