Home values across Phoenix area expected to continue climbPosted: Updated:
PHOENIX -- It looks as if 2013 is going to be a good year to be a homeowner in the Valley.
A new report from the W.P. Carey School of Business at Arizona State University says prices across the Phoenix metro area are expected to continue rising this year.
Since hitting a low point in September 2011, home values throughout the city have enjoyed sizable gains.
According to the report, the median single-family home price went from $120,500 to $163,000 between January 2012 and January 2013.
With a limited supply of homes available, prices are only expected to increase.
"We still have a long-term supply shortage with only about 50 percent of the active listings (without contracts) that we would expect to see in a normal market," said Mike Orr, director of the Center for Real Estate Theory and Practice at the W.P. Carey School of Business. "Consequently, the trend is for prices to continue to rise across most sectors. Most homes priced reasonably below $500,000 continue to attract multiple offers in a short time. Sellers are firmly in control."
After peaking late last summer, the number of investor purchases is slowly declining. Orr said that number will continue to decrease as it becomes more difficult to find a bargain.
Foreclosures and foreclosure starts did increase slightly from December 2012 to January 2013, but that is a normal occurrence during the end of the year as banks typically pull back on foreclosures during the holidays.
To read the full report of home prices across Phoenix click here.