ASU expert Michael Orr sees sudden uptick in Phoenix-area housing market
These numbers are for non-distressed homes under contract in Maricopa and Pinal Counties, on a typical day in late February 2015 versus the same day in 2014:
• under $150,000 – up 7 percent
• $150,000 to $250,000 – up 35 percent
• $250,000 to $400,000 – up 38 percent
• $400,000 to $600,000 – up 33 percent
• $600,000 to $1.5 million – up 12 percent
• more than $1.5 million – down 10 percent
Overall, non-distressed listings under contract are up 26 percent. Orr says luxury homes aren’t seeing as much impact from recent changes in market conditions, but entry-level and mid-range homes are attracting far more buyer interest.
“The reasons for these increases include: 1) that lenders have started to relax their previously tight loan-underwriting guidelines and 2) that more people who went through foreclosure or short sale are now able to return to homeownership,” explains Orr. “These changes largely affect the lower and middle ranges of the market.”
Orr calculates that, in 2014, the median single-family-home price in the Phoenix area went up 5.4 percent. He now expects 2015 to be a much better year for home sellers, if the new trend continues. However, he does have one note of caution.
“The Phoenix area was already dealing with a relatively low supply of available homes for sale before this uptick,” said Orr. “If the higher-demand trend continues for several months, then that tight supply could become a bigger issue.”
This means 2 things for anyone considering entering the market, as a buyer you may see multiple offers and bidding wars… as a seller NOW may be the time to reconsider selling your home! I’d be happy to complete a confidential assessment of your home’s value – just call me!
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