Phoenix ranks No. 2 for the biggest decrease in home values

Sourced By: AZ Big Media 

According to the Zillow Home Value Index (ZHVI), a measure of the typical home value and market changes across a given region and housing type, Phoenix home values have seen the second-biggest decrease in the nation. Phoenix home values — based on the ZHVI — dropped 6.1% in July, trailing only Austin, Texas (10.1%) for the biggest decrease in the U.S. 

Nationally, a warmer-than-normal housing market is showing signs of a typical late-summer seasonal cooldown, according to the latest Zillow® market report. Competition is still strong, with inventory hitting new lows for this time of year, but buyers have a bit more time to find and consider their big purchase. 

"The housing market is returning to normal seasonal patterns, and that's a positive sign for buyers who faced stiff competition this spring," said Zillow senior economist Nicole Bachaud. "As summer winds down and kids head back to school, home shopping gets put on the back burner. Traditionally, buyers who remain in the market gain a bit more bargaining power heading into the fall. This year, however, sellers are sticking to the sidelines, which means even fewer options and high prices."

While Phoenix home values dropped, the typical U.S. home value climbed 0.9% from June to July — a steamy pace for this time of year, but a step back from 1.4% growth in the two preceding months. The nation's typical home value is now $349,679,² which is 1.4% higher than last July and 46% above pre-pandemic levels in February 2020. 

Austin was the lone major market in which home values dipped from June to July, falling 0.5%. The slowest monthly home value growth was in San Antonio (0.2%), Denver (0.2%), Birmingham (0.3%) and Memphis (0.3%).

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