PHOENIX -- Home values across the Valley continue to climb.
A new report from the W.P. Carey School of Business at Arizona State University revealed this week that the median single-family home price in Maricopa and Pinal County has risen to $175,000.
The median home price has increased approximately 30 percent since March of 2012, and the momentum is expected to continue until at least June.
The median price of a condo or townhouse has reached $116,000, which is approximately a 43 percent increase from March of last year.
Mike Orr, director of the Center for Real Estate Theory and Practice at the W.P. Carey School of Business, said a lack of homes for sale is helping drive up prices.
“The number of active single-family listings has been dropping fast and went down another four percent from March 1 to April 1,” Orr explained. “Fewer than 12,000 single-family homes were up for sale (without an existing contract) on April 1, and 80 percent of those were priced above $150,000, making it very tough to find properties in the lower price range.”
With buyers having a tougher time finding a great deal, many investors are starting to lose interest in the Phoenix market.
The percentage of homes purchased by investors dropped from 29.2 percent in February to 27.1 percent in March, which is the lowest it’s been in several years.
Another interesting wrinkle in the Phoenix real estate market; the population is growing at a faster rate than new homes are being built.
Between 50,000 and 60,000 people are expected to move to the Valley in 2013, but only about 12,000 new single-family homes are expected to be built.
“Builders are scratching their heads, trying to figure out what to do. They don’t want to overbuild like they did during the peak, and they don’t want to build a bunch of new homes for people who can’t secure the mortgages needed to buy them with such tight lending conditions,” said Orr.
To read Mike Orr’s full report visit wpcarey.asu.edu/finance/real-estate/upload/Full-Report-201304.pdf