PHOENIX — While it's no surprise that Phoenix would make Zillow Group Inc.'s 10 hottest housing markets of 2022, it was a shock to see the rapidly growing metro fall from No. 2 last year to No. 8 this year.
With a typical home value of $422,463 in metro Phoenix, Zillow forecasts home values to rise 20% through November 2022 in metro Phoenix.
The hottest markets index for 2022 is based on several factors, starting with Zillow's (Nasdaq: Z) model for predicted price growth.
Phoenix ranked No. 2 for price appreciation in 2021 when Zillow's home value index showed typical homes rising 32.4% in metro Phoenix, said Jeff Tucker [bizjournals.com], senior economist for Zillow.
"There are a couple reasons we predict slower price appreciation ahead for Phoenix," Tucker said. "One is pure mean reversions: the last year of very fast price growth has made Phoenix a less attractive destination for many movers."
Zillow recently conducted a research project in collaboration with Allied Van Lines that found Phoenix dropped from the No. 1 to No. 8 spot for net inbound interstate moves at the same time that inbound movers saw their ZIP code level price savings all but evaporate, he said.
