Phoenix Home Prices Surge 32 Percent

Contact Realtor Jen Wehner 480-748-6925

Click to Search Phoenix Homes

The current buyer’s market in Phoenix has become a lot more competitive, with home prices climbing over the past year. According to an article in the Phoenix Business Journal, home prices went up 32 percent over the last year. Although this should be good news for people waiting to sell their properties, analysts believe that the astonishing surge in prices will diminish and that the growth in prices should become more stable before the end of the year.

Fast Growth

Phoenix is absolutely no stranger to fast growing real estate prices, but the growth over the last year comes after a housing market that was flat or worse for a very long time. Consumer curiosity in single-family homes has compelled the average price increase of 32.4 percent in Maricopa and Pinal counties.

The growth has also helped influence an upward surge in the prices of condominiums and townhouses, with the median prices of those properties in the same counties going up an overwhelming 37.3 percent over the same period.

Decrease in Stock

At the same time that the prices have increased, the amount of properties on the market has declined. The overall effect of this drop in inventory, combined with the growth in prices, has been a much more competitive buyer’s market in the area, according to the report. In fact, the report reveals that, in both Maricopa and Pinal counties, the number of single-family home sales decreased 5.8 percent and there was only half of the properties on the market compared to a year ago.

Lower Priced Homes Attracting Interest

The article discloses, properties that are priced below $250,000 were receiving lots of offers and receiving them quickly. To stress this point, the article notes that a property in Chandler obtained 84 offers and a property in Glendale received 95 offers. The home in Glendale sold for 17 percent above the original asking price and closed within four weeks of it being listed.

Investor demand has been driving these prices, which is also inspiring new business for contractors building new homes. In Maricopa County and Pinal County, new home sales increased 57 percent compared to this time last year.

Good News for Foreclosures

The foreclosure rate has also fallen considerably since last year. The number of completed foreclosures has fallen 52 percent in May 2012 compared to May of last year, though there was a slight increase in the amount of foreclosure notices sent out. That being said, the amount of foreclosures being completed was far below the number of finalized foreclosures during the worst time of the real estate crash.

North Phoenix homeowners who want to put their homes up for sale have enjoyed steadily increasing home values over the last year, which means the buyers out there seeking to get into a new house may find themselves with a good bit of competition for the property they want to purchase

If you are interested in learning more about North Phoenix homes, please feel free to SEARCH PHOENIX HOMES or contact TOP PHOENIX REALTOR, Jennifer Wehner.