We need two things for the Phoenix Real Estate market to improve– there needs to be a big increase in demand from first-time home buyer and/or the housing market could get a boost if lenders lower their current tight mortgage qualifications.
In the Phoenix Real Estate Market Home prices and sales dipped in September as the number of houses for sale across metro Phoenix continued to tick up.
All are trends that have been playing out in the Phoenix Real Estate Market most of this year, according to the latest report from Arizona State University’s W.P. Carey School of Business.
The median sales price of a Phoenix-area house fell to $209,900 in September, from $213,500 in August. Home sales fell 3 percent from August to 6,655 in September. The number of houses for sale increased 1.3 percent to 24,954 between September and October.
Mike Orr, the school’s director of real estate theory and practice, said not to expect a big boost in the Phoenix Real Estate Market until next year.
“Demand has been much weaker since July 2013 and still shows little sign of recovery,” Orr said. “We anticipate pricing will continue to move sideways over the next few months, and a significant increase in demand will be required to change things.”
Orr said for the Phoenix Real Estate Market to get back to “normal,” there needs to be a big increase in demand from first-time home buyers.
He also said the Phoenix Real Estate Market could get a boost if lenders lower their current tight mortgage qualifications.
A breakdown of home sales prices
|Metro Phoenix home sales||Median sales price, Sept. 2014||Median price, Sept. 2013||Percent change|
|New-home sales||$298,396||$279,182||+ 6.9%|
|Normal resales||$206,250||$200,000||+ 3.1%|
|Investor flips||$177,300||$175,000||+ 1.3%|
|Short sales, preforeclosures||$160,000||$144,000||+ 11.1%|