Every month presents new challenges for buyers in Arizona as prices continue to climb. Cities such as Flagstaff and Prescott have typically been the priciest in the state, but that changed in the last quarter as Phoenix affordability slides further out of reach.
According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index, less than a quarter (22.3%) of all homes sold in the Phoenix metro area were deemed affordable by families earning the national median income of $90,000 or more.
Every metro in Arizona experienced eroding affordability. However, three areas in the state posted higher shares of affordable homes compared to the current U.S. average of 42.8%. These were Sierra Vista-Douglas at 54.2%, Yuma at 43.3%, and Lake Havasu City-Kingman at 42.9%.
Tucson hit a new milestone at 40.6%, marking the first time it has dipped below the national affordability average in more than ten years. Some of the least affordable options are still found in Prescott Valley-Prescott, with a share of 28.5%, while Flagstaff was at 22.8%.
“Phoenix house price gains have been eclipsed by metropolitan areas in Florida and Texas. The top gains over the year in house prices for May were in Tampa (36.1%), Miami (34.0%), and Dallas (30.8%). Phoenix price gains were 29.7% for May based on the S&P CoreLogic Case-Shiller Price Index released July 26. Nationally, house price gains dipped 19.7% compared to 20.6% in April. The 20-city composite was also lower than the previous month, posting an annual gain of 20.5% in May compared to 21.2% in April. The metropolitan area with the lowest one-year change in house prices for the month was Minneapolis at 11.5%.”
Check out AZ Big Media’s story here.