The Phoenix-area housing market appears to be starting its slow march back to normal, according to latest data from an ASU real estate report.
From July 2012 to July 2013, the median single-family home price rose 30.3 percent from $149,000 to $194,150. The average price per square foot went up 24.3 percent.
Authors of the report noted the most startling boost was in the median townhome/condo sales price, which shot up 50 percent from $82,000 to $123,000, as the low-end supply of townhomes dried up.
The report is from the W. P. Carey School of Business at Arizona State University.
The number of listings not already under contract went up 26 percent from Aug. 1, 2012 to this past Aug. 1. Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business, said he's starting to see some inventory improvement in the middle range from $150,000 to $500,000, where almost all new construction is focused.
Orr said increased access to jumbo loans is helping to boost the luxury market. The rate of single-family home sales over $500,000 has already grown a whopping 64 percent from July 2012 to this July, he said.
Still, the amounts of overall sales activity and month-to-month price movement were pretty stagnant this summer. Orr said that's normal for this time of year.
"The upward pressure is likely to return once temperatures drop below 100 degrees and the snowbirds return, around October," Orr said. "However, I expect less dramatic price hikes than we've seen over the past two years."
The rate of foreclosures also continues to subside from the peak levels of spring 2009. Foreclosure starts, owners receiving notice their lenders may foreclose in 90 days, dropped 61 percent from July 2012 to this past July. Completed foreclosures went down 56 percent.
The report noted one continued challenge is the lack of new homes being built. Current new-home sales rates are less than a third of what would normally be needed to keep up with current area population growth.
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