The real estate landscape continues to shift as evidenced by the latest figures from the S&P CoreLogic Case-Shiller Indices. In a report that has been closely watched by industry professionals and homebuyers alike, the Phoenix area saw its year-over-year home price growth slow down in September after a summer of fluctuating trends. According to ABC15, prices in the Phoenix metro were up by 0.3% from the previous month. In an apparent gear shift, this comes on the heels of a slight drop between July and August – the only monthly decrease recorded in 2024.
Nationally, September brought a continuation of cooling in the housing market, with the CoreLogic S&P Case-Shiller Index revealing a 3.9% year-over-year growth, down from highs earlier in the year. Struggling with inflation fatigue, homebuyers are feeling the pinch with a typical mortgage payment, stripped of property taxes and insurance, now ringing in at 82% higher than pre-pandemic levels, according to a CoreLogic report. Western markets and larger metro areas have seen prices weaken more notably, offering a stark contrast to the relatively stable property values in the Midwest and Desert West.
Phoenix's home prices in September stood at $329,970, which was a 1.8% increase from last year's median but a slower growth rate compared to August's 4.25% and preceding months. The broader trend, however, underscores a more pronounced cooldown in markets like California, indicative of a growing disparity in regional real estate dynamics.
Affordability remains a significant barrier to entry, especially in California's high-cost markets, even as inventories begin to swell. While the markets have seen a slide in asking prices, "the median price reduction remained steady over the course of the year, hovering at about 4.7%," CoreLogic notes. It is the three California markets of Los Angeles, San Diego, and San Francisco that led month-over-month declines in September, all recording a 0.9% drop, underscoring the rapid volte-face in what were once sizzling markets.
On closer inspection, 17 out of the 20 metros analyzed saw year-over-year price growth decelerate, with Miami experiencing the most pronounced slowdown, trailed by Los Angeles and Boston in diminished velocity. Conversely, Minneapolis, Cleveland, and Portland, Oregon bucked the trend with escalating annual gains, shining a beam of resilience amidst a broader tapering horizon.
