In 2014, Arizona home prices rebounded to near 2005 levels after falling dramatically in the housing bubble crash of 2008 to 2011. Phoenix and other cities in Arizona were hit hard during the Great Recession when the sub-prime mortgage crisis resulted in big declines in home values across the United States.
Median home price in Arizona cities 2004-2014
Arizona home prices peaked in 2006
According to Zillow, home prices in several Arizona cities popular with boomers topped out in the summer of 2006, before falling roughly 50%. In Phoenix, the median home price rose to $246,400 in June 2006. Tucson homes peaked at $196,000.
Arizona real estate bottomed out in 2011-12
Following was a period of rapid decline, with residential real estate prices falling most sharply from 2008 through 2011. By September 2011, the median home price in Phoenix was only $106,700. Tucson homes bottomed out in January 2012 at $110,200, according to data published by Zillow.
Steady gains in Arizona home prices 2012 – 2014
Triggered by historically low mortgage rates and low inventory, the Arizona real estate market showed new signs of life in 2012, as evidenced by a noticeable upswing in prices. Home prices leveled off in 2013 and 2014 at levels roughly equivalent to 2004 as builders began to catch up with demand and homes in foreclosure became available for sale.
There is no way to predict where Arizona home prices will go from here. However, it appears that for the time being, a modest recovery from the bottoms following the real estate bubble is underway.