Usually for my monthly look at the Scottsdale and Phoenix real estate market numbers I turn to The Cromford Report – there’s really no better source of up-to-date information on the Phoenix housing market. But I just learned today that a fire destroyed all of The Cromford Report’s computer equipment. They’re working to rebuild their databases, but numbers are not yet available. I really wish them all the best in getting things back up and running.
So for this month I’ll look at the Case-Shiller numbers (which are good, too) and some others to analyze what went on in the Phoenix and Scottsdale real estate market in January.
The S&P/Case-Shiller Home Price Index released January 26, 2010 (and covering through November 2009) had more good news for the Phoenix real estate market: prices increased for the sixth month in a row.
Phoenix real estate market highlights
- Phoenix home prices were up 1.1% in November 2009 compared to October. That gain followed a 1.3% gain in October over September. It was the 6th straight month of month-to-month price increases in the Phoenix real estate market.
- Rising for the sixth month in a row, Phoenix home prices are beginning to eat away at the overall price decline since the real estate bubble burst. As of November, Phoenix home prices were down 14.2% over the previous year (that’s compared to 18.1% in October). Year-over-year price declines in the Phoenix real estate market have been shrinking since March 2009 – from 36% in March to 14.2% in November. In other words, the Phoenix housing market continues to improve!
- As you can see from the chart below, Phoenix home prices have clearly fallen from their June 2006 peak (down 50.8% since then), but home prices have been rising since June 2009. The dotted line is the trend line for Phoenix home prices since 1989 – it makes clear the fact that prices are rising over time, despite the real estate crash here. In other words, homeownership is still a good investment.
Phoenix Real Estate Market Home Prices in 2009
- Phoenix Real Estate Market Home Prices in 2009
Source: S&P/Case-Shiller
- S&P/Case-Shiller Phoenix Housing Prices
Source: S&P/Case-Shiller
National-level highlights
- While home prices in the 10-City and 20-City composite indices were still down – 4.5% and 5.3%, respectively – compared to a year earlier, the rate of decline has continued to slow; this marked the tenth straight month of improvement. And after 20 months of double-digit year-over-year declines, November marked the third straight month of single-digit declines.
- Compared to the previous month, the 10-City and 20-City composite indices were down slightly. But Los Angeles, San Diego, and San Francisco, as well as Phoenix, have all seen at least six consecutive months of price increases. Home prices in most of the cities were still down compared to year-ago levels, but in 4 of the 20 cities – Dallas, Denver, San Diego and San Francisco – home prices increased compared to a year earlier.
- S&P/Case-Shiller Real Estate Prices
Source: S&P/Case-Shiller
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