US Home Prices Rise at Slowest Pace in 6½ Years
This article authored by: Rob Hallberg
I found this article which is about all US homes but what about Tucson? My analysis follows the article.
WASHINGTON – U.S. home prices rose at the slowest pace in more than six years in March, a sign weaker sales are keeping a lid on price increases.
The S&P CoreLogic Case-Shiller 20-city home price index climbed 2.7% from a year earlier, down from an annual gain of 3% in February.
Price gains in formerly red-hot cities such as Seattle and San Francisco have noticeably cooled. Nationwide, home price increases have run ahead of wage growth for five years, leaving many homes out of reach. That has slowed sales, forcing would-be sellers to rein in price increases.
The 20-city price index has fallen sharply from a year ago, when it increased 6.7%. Seattle’s home prices rose 1.6% in March from a year ago, down from a 13% gain in March 2018. Prices in San Francisco rose just 1.4%. The biggest increase was in Las Vegas, at 8.2%, followed by Phoenix, at 6.1%.
Tucson Analysis: Home prices in Tucson have risen by about 4.3% since a year ago; however, as the article states, home price increases are slowing. In fact, the median sales price in Tucson actually dropped from March to April (only a $500 drop, but it does show the trend).
I think the one month drop is an anomaly and prices will show an increase when May statistics are out. But I do agree that prices will not increase much this Summer except in the lowest price ranges ($250,000 or less).
Rob and Catherine Hallberg are Associate Brokers with Long Realty, a Berkshire-Hathaway Affiliate and Southern Arizona’s largest Brokerage. Send Rob and Catherine an email for a fast response to your questions; for an even faster response, Call (520) 407-8667 or Text (520) 203-2031.