September Home Prices Inch Up in Metro Phoenix
D. Patrick Lewis, a Realtor with Realty Executives, said homes near $200,000 are not lasting long on the market.
Photo by JIM POULIN | PHOENIX BUSINESS JOURNAL
By Angela Gonzales, Phoenix Business Journal
(portion reprinted with permission)
Home prices continue to rise in metro Phoenix, creating a bigger obstacle for first-time home buyers.
According to CoreLogic monthly report, home prices increased 7.67 percent from September 2017 to September 2018, higher than the national average of 5.6 percent.
Metro Phoenix is among the 38 percent of metropolitan areas that are considered to have an overvalued housing market as of September 2018, according to the CoreLogic (NYSE: CLGX) report.
The MCI analysis categorizes home prices in individual markets as undervalued, at value or overvalued, by comparing home prices to their long-run, sustainable levels, which are supported by local market fundamentals, such as disposable income.
As of September 2018, 19 percent of the top 100 metropolitan areas were undervalued, and 43 percent were at value.
When looking at only the top 50 markets based on housing stock, 46 percent were overvalued, 14 percent were undervalued, and 40 percent were at value, according to the CoreLogic report. The MCI analysis defines an overvalued housing market as one in which home prices are at least 10 percent above the long-term, sustainable level. An undervalued housing market is one in which home prices are at least 10 percent below the sustainable level.
Affordability is an issue catching the attention of homebuilders and Realtors in the Valley. In September, the Phoenix Business Journal hosted a roundtable of industry leaders to discuss the issue.
“[It] is such an issue right now, especially out there in the residential resell, that if you’re looking for a $200,000 home, you’re going to get what you get,” said D. Patrick Lewis, a Realtor and regional development director for Realty Executives Camelback, at that roundtable discussion.
“There’s so many investors that we’re finding bidding wars at that price range, especially if it’s redone and nice,” Lewis said. “They last probably three days on the market if they’re not redone.”
D. Patrick Lewis, home prices, Patrick Lewis