As the nation’s housing market prices recover to pre-recession levels, homes in the Arizona market are still on average worth 16 percent lower than they were almost 12 years ago.
Those findings come from a report by CoreLogic looking at state by state and national market recovery.
Tina Tamboer, an analyst for the Cromford Report, said current Arizona market conditions are favorable and nothing to worry about.
Most of the country’s housing markets peaked before falling into deep decline around 2006, including Phoenix. Nationally, the market has recovered since dropping 33 percent during the recession, and hitting a bottom in 2011. U.S. housing prices are 1 percent above the 2006 peak.
“Homeowners in the United States experienced a run-up in prices from the early 2000s to 2006, and then saw the trend reverse with steady declines through 2011,” Dr. Frank Nothaft, chief economist for CoreLogic, said in a statement. “Greater demand and lower supply – as well as booming job markets – have given some of the hardest-hit housing markets a boost in home prices. Yet, many are still not back to pre-crash levels.”
Arizona joins the ranks of other states such as Florida, Illinois, and Nevada in not reaching pre-crash levels. It saw its own peak in June 2006, before plunging 51 percent from peak to trough, one of the largest drops in the country. Arizona has seen a 70 percent increase from its trough point but, the market is still 16 percent lower than its peak prices.
According to Zillow’s home value index, the average Arizona home price is currently $233,400. For Maricopa County, the median home value is $254,600.
When accounting for inflation, Tamboer said the market is right on track to where it would be had there not been a price spike, followed by the crash. She said most Phoenix-area markets are currently around 20 percent below peak prices.
She expects prices to keep rising, making now a good time to both buy and sell. She said locally, median house prices at the end of last year were around $245,000.
She said current market conditions are in favor of sellers, especially with houses on the market under $300,000. She added these are likely to be competitive and get several offers.
For buyers with prices rising, she cautioned that holding off will likely lead to getting a smaller house for your money. Each year a buyer holds off with current rates they could be losing 50 square feet for the same price.