Phoenix area home values up 29% in last year according to ASU Report

August 12th, 2012 @   -  No Comments

According to the latest housing report released Thursday by Arizona State University’s W.P. Carey School of Business, the median home price for single family homes in Metro Phoenix, rose 29.3 percent from June of 2011 to June of this year, to $150,000.

According to the ASU Report, the recent price increases are tapering off a bit, climbing 2% in June over May.

Sales of single-family homes in June were down 16 percent from a year ago, primarily due to the diminishing supply of existing homes on the market.   Phoenix-area inventory was down 33 percent as of Aug. 1 from a year earlier.  The supply of distressed properties, or lender-owned homes, fell by 68 percent during the same period, the report said.

Michael Orr, author of the ASU Report said “The situation for the average home buyer remains dire, despite low interest rates and historically cheap prices.   “That’s because of the low inventory, and any offer from an ordinary home buyer is typically going to be less attractive than the multiple all-cash offers from investors with few strings attached and no appraisal required. Many ordinary buyers are coming away empty-handed after submitting 10 or more offers.”   In fact, the Phoenix market has become so flush with investors that 38.4 percent of home sales in June were purchased without financing, Orr said.  By comparison, that number was only 8.3 percent back in June 2007.

Source: Phoenix Business Journal

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