We’ve all read the headlines about the increase in home values across the country — Arizona in particular. But 28 Arizona cities have seen an increase in typical home value in excess of 20 percent over the last year.
El Mirage leads the state with a 28.3% one-year increase in home values, according to research from Zillow. Typical home values in El Mirage have jumped to $284,174.
Top 30 Arizona cities for increase in home values
Here are the Top 30 cities in Arizona with population of at least 35,000, ranked by one-year increase in typical home values, with current typical home value, one-year change in median income, and current median household income:
The red-hot residential real estate market is starting to show signs of slowing. The typical May ramp-up in home sales didn’t happen last month, as sales dipped 0.2% from April and home prices were uncharacteristically flat in the report’s 53 metro areas.
Also defying seasonal trends was a 7.1% drop in listed homes at a time of year when active inventory is normally building for peak summer sales months. But two other metrics confirm that the frenzied sellers market marches on: Months Supply of Inventory dropped to 1.1 months and homes changed hands in a mere 28 days. Both are records in the 13-year history of the report.
“The first small step toward a more balanced market may have appeared in May, as home prices finally stabilized after a long run of sustained increases. At the same time, cooling sales defied typical April-May trends and report records were set for low inventory and fast turnaround times,” said Nick Bailey, President, RE/MAX, LLC.
With year-over-year comparisons heavily skewed by the pandemic, April-to-May averages for 2015-2019 show what is typical:
• While May 2021 home sales declined 0.2% month over month, 13.9% is the 2015-2019 average gain from April to May. Year over year, sales were up 53.4%.
• May’s Median Sales Price of $320,000 was the same as April’s, compared to the typical April-to-May increase of 3.2%. Year over year, May’s price is 17.0% higher than May 2020’s $273,498.
• Instead of the 7.1% decline from April to May, inventory typically grows by 1.8%. Year over year, inventory was down 43.0%.