Housing prices rise in the Phoenix area

Housing prices rise in the Phoenix area (Alberta Times) ASU's latest real estate report shows that housing prices in the Phoenix area continue to rise. As of April, local...

Phoenix area housing prices rise (Alberta Times) ASU's latest real estate report shows that housing prices in the Phoenix area continue to climb. As of April, the average local home price was $140,000, a quarter higher than a year ago. The report pointed out that there are three driving forces for the rise in housing prices: soaring oil prices, oversupply and more and more buyers entering the market. If the momentum holds, rising home prices will be good news for homeowners who have been struggling for years on the verge of foreclosure. The oversupply in the market is mainly reflected in new homes for sale. There are currently about 8,800 new homes waiting for sale locally, which is much less than the more than 50,000 homes in 2008. Secondly, total sales fell, 12% lower than the same period last year. Then there are the foreclosed houses, which dropped by 62% compared with the same period last year. Housing supply is so low in the Phoenix metropolitan area that bidding wars are the norm. It is said that after an offer was made on a house in Chandler, 76 buyers were bidding, and at least 65 buyers claimed that they were buying it to live in. The report reminds everyone that the average price of a home has returned to the level of mid-2002, which means that prices are still far from the highest point of the real estate bubble. But those owners before 2002 should make a profit by selling their inventory at this time. But the biggest question in the market is where buyers and sellers find a balance. As home prices rise, more owners will sell their properties. However, if house prices rise too much, buyers will lose interest or look for another market.