Home prices rise 32% in Phoenix Metro areaPosted: Updated:
TEMPE, Ariz. -- Home prices in the Phoenix metropolitan area continue to rise.
The W. P. Carey School of Business at Arizona State University says the median sales price of a single-family home in the Phoenix area is up by more than 32 percent from May 2011.
"The reason is, we don't have that many for sale, and there are a lot of buyers out there," said ASU's Michael Orr, who compiles real estate data.
"If you're a seller, it feels good. If you're a buyer, you're getting desperate," said Orr.
The cost to buy a Phoenix-area house climbed 7 percent to $147,000 last month.
Orr expects the month-to-month rise in sale prices to slow for the rest of the year.
Investors are still playing a major role in the Valley's real estate market, snatching up between 25% and 30% of current home sales.
Analysts say the number of homes for sale in the Phoenix metro area is down 50 percent from May 2011.
Currently, 8,550 homes are listed for sale and don't have pending contracts from buyers.
They also said that moderately-priced homes continue to draw the most buyers and bids.
To read Michael Orr's full report on real estate in the Valley visit http://wpcarey.asu.edu/finance/real-estate/upload/Full-Report-201206.pdf