(See recent posts on Phoenix Case-Shiller Home Price Index.)
Phoenix Home Prices Stop Falling!
In fact, greater Phoenix home prices APPRECIATED 1.1% between May and June!
Case-Shiller hadn’t shown a single month with any appreciation in Phoenix since June 2006, that’s 3 whole years ago folks. Quite a drought!
The last time Case-Shiller showed home price appreciation this large for Phoenix was in November 2005.
Historically, 1.1% appreciation is quite large for one month in Phoenix. For example, in the decade of the 1990’s, not a single month showed home price appreciation of 1.0% or higher according to my analysis of Case-Shiller data.
Great News for Arizona Home Buyers
Phoenix home prices could drift lower this autumn but on the other hand May 2009 could end up being the bottom of the current home price cycle. Phoenix home prices in May 2009 were the same as in June 2000 according to the Case-Shiller Index.
(On the other hand, if you bought your home after June 2000, that means, on average, your home is worth less than when you bought it. Yikes!)
John’s Take 2 Months Ago
I just re-read my post two months ago on Case-Shiller;
I don’t know if Phoenix area home prices are going to bottom out this summer but I certainly expect to see an elbow in that graph when we get the May and June data. After that, I expect “gentle” price declines until we reach the bottom, say, next January.
Well, we got the elbow. Now, let’s see what happens to prices the rest of the year.