Categorized | Residential

Phoenix Housing Market Continues to Improve

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The Phoenix residential real estate market is quickly becoming more favorable to sellers, as the average home selling price continues its upward path. Housing prices are twenty-five percent higher than they were on year ago, and it is likely that they will continue to rise in the coming months.

The median selling price in Phoenix is now at one hundred and forty thousand dollars. While more homebuyers are entering the market, one of the biggest factors in the pricing gains seen thus far this year is the limited number of sales inventory. With fewer homes for sale now than there has been in the last few years, it is likely that housing prices will continue their ascent.

The limited sales inventory has led to bidding wars in which homebuyers are paying more than the asking price in many cases. That trend is very much making the housing market a seller’s market. The sales inventory figure is at its lowest in Arizona since before the 2007 boom.

The limited sales inventory is not the only major factor making an impact. There have been far fewer foreclosures this year than in previous years. Because foreclosures typically sell for far less than a non-foreclosed house on the regular market, they have had a major role in depressing prices. With fewer foreclosures, one can expect prices to increase.

Lastly, new home construction is up from where it has been in the last few years. Because new homes tend to cost more, any increase in sales has a positive impact on the growth in home values in the area.

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About James Pattric

James writes for the Residential category (along with Josh Johnson) and also heads up the Resources category.

One Response to “Phoenix Housing Market Continues to Improve”

  1. Carmen Brodeur says:

    The Phoenix market is definitely on fire. It is amazing how fast prices are rising. Bidding wars are everywhere.

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