Phoenix-area home prices, which have remained consistent for several months, are on the rise again. The median single-family home price in Maricopa and Pinal counties jumped more than 34% year-over-year in October to $157,000 after hovering between $149,000 and $150,000 for four months, according to a report from the W.P. Carey School of Business at Arizona State University.
“After four months of limited movement in the median single-family home price, the Phoenix area is again seeing an upward trend,” said the report’s author, Mike Orr, director of the Center for Real Estate Theory and Practice. “The summer lull ended, and we had an influx of snowbirds and other buyers. We’re seeing about 5% more sales activity this October than last October.”
The small inventory of available homes and condos for sale in the Phoenix-area market increased 31% over the past three months; however, the report believes the inventory will most likely level off over the winter months.
“The overall number of active single-family home listings without an existing contract as of Nov. 1 was fewer than 12,500 in the greater Phoenix area,” says Orr. “Also, 76% of that supply is priced above $150,000, so ordinary buyers in the lower range still face rough competition from multiple bidders, including investors and others making preferred all-cash offers.”
Orr reported that the market is beginning to shift toward a larger number of normal resales and new-home sales. In fact, normal resales are up 100% from last October and the sale of new homes jumped 85%.
To view Orr’s report in its entirety, click here.