August 15, 2012
The June housing market report indicates that some stability may be returning to prices in Phoenix, however the market is complex and continues to be out of balance. Mike Orr, director of the W. P. Carey School’s Center for Real Estate Theory and Practice, reports that there was indeed little change in prices between May and June of this year. Comparing to June 2012, however, the evidence shows significant price recovery. Median sales price is up 29 percent to $150,000 and price per square foot is up 21 percent, to $98.11.
Supply, however, continues to be down. There are 33 percent fewer homes for sale this August compared to August 2011. And the distressed supply is down 68 percent for the same period. Lower supply means fewer sales: single family home sales in June fell almost 16 percent compared to June last year. The lower end of the market, especially, is squeezed because of the drop in the supply of foreclosed properties.
Today we’re talking with Mike Orr about how this scenario is playing out for buyers, sellers and investors.
Article and full interview can be found here: