Increase In Prices And Interest Rates Make Homes Less Affordable In Phoenix

Compared to a majority of United States housing markets, the level of affordability in the Phoenix market is dropping due to growing prices and increase rates.

Phoenix has a deep history of being known for low-priced homes, which has served as a major attraction to new residents and businesses. That is no longer the case as a recent report showed the area has dropped down the list of most affordable places to live in the U.S.

Compared to this time last year, interest rates are up approximately 1 point, which adds to the monthly home costs. As a result, home buyers this year require an annual income of $56,231 to afford a median-priced home of $262,000 in October. 

As has been the trend in recent years, home prices in the Valley continue to see a steady increase. Just last week, Trulia named Phoenix as a housing market to watch in 2019. Housing costs have risen 6 percent year over year during October.

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