Housing Supply Shrinking In Phoenix

Dated: 01/19/2016

Views: 158

Housing Supply Shrinking In Phoenix

Start your home search at www.teammonsen.com
Text "help" to 602-357-0641 for a free consultation

Once the poster child for the housing crash, Phoenix is a hot market again. This time, however, it is not investors inhaling distressed properties, but owner-occupant buyers fueling robust sales.

Single-family home sales rose 1 percent in May over April and 7 percent over May 2014, according to Arizona State University's Center for Real Estate Theory and Practice at the W. P. Carey School of Business.

Townhouse and condominium sales dropped 5 percent in May from April, but were up 11 percent from May 2014. Active listings dropped 7 percent compared to April. On June 1 there were 21 percent fewer listings than June 2014.
"In the past two months the number of building permits issued in the $200,000 to $500,000 range has increased," said Michael Orr, director of the Center for Real Estate Theory and Practice and author of the monthly Greater Phoenix Housing Market. "But buyers will still face competition for homes at the affordable end of the market. At the luxury level, where supply is still adequate, the number of homes for sale is expected to fall by the end of the second quarter."

The median sale price for single-family Phoenix homes increased 11.5 percent in May from a year ago to $223,000. Condominium prices also surged nearly 12 percent.

"The market is moving very fast, especially under $250,000. Homes are lasting one or two days on the market. It slows down quite a bit in the higher price ranges," said Erik Jensen, a real estate agent with the Caniglia Group.

Jensen said investors are still in the Phoenix market but in far fewer numbers. Large-scale institutional investors had made up the bulk of Phoenix buyers just after the housing crash, purchasing thousands of homes that they quickly turned into lucrative rentals. Many of these homes were relatively new construction, as builders had flooded the market during the height of the housing boom. Investors now are setting their sights on a different set of homes.

"We're seeing a lot of influx of investors in the mid-range market, buying older, distressed properties and renovating them. Home flipping. It's not the same type of flipping—this is more, they're ripping the roofs off and raising the ceilings, doing all new cabinets and flooring. High quality remodels,"

Reference: http://www.cnbc.com/2015/07/16/housing-supply-shrinking-in-phoenix.html

Start your home search at www.teammonsen.com
Text "help" to 602-357-0641 for a free consultation

Blog author image

Tyler and Kent Monsen

Tyler had goals of becoming a Professional Golfer at the tender age of 4 when he was first introduced to the game by his father. He went on to be a High School All-American and played 2 years in colle....

Want to Advertise on this Site?

Latest Blog Posts

How To Sell A House 4 New Rules That Can Make Or Break A Sale

Wanna sell your home FAST and for TOP Dollar? Follow the below simple steps and you are on your way.What's your home worth? Get a FREE valuation by clicking here... http://www.tyler.tmrealtyaz

Read More

Real Estate Market Update For The Week Of March 27 2017

TM Realty Group HomeSmartReal Estate Made Easy602-357-0641info@tmrealtyaz.comtmrealtyaz.comText, "PQL" to 602-357-0641 for a FREE credit evaluation with no obligations.... For the

Read More

10 Housing Markets To Envy In 2017

10 Housing Markets to Envy in 2017DAILY REAL ESTATE NEWS | THURSDAY, DECEMBER 01, 2016 The national housing market is largely predicted to moderate in 2017, but a handful of metros are expected to

Read More

Top 10 Reasons To Hire A Buyers Agent When Buying A House

Buying a house is a very exciting time and one that buyers should prepare for.  Whether it’s preparing to get a mortgage or shopping for houses, making a mistake when buying a house

Read More