Phoenix housing market getting back to 'normal'

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By Andrew Michalscheck By Andrew Michalscheck

PHOENIX -- A sense of normalcy appears to be returning to the Phoenix housing market.

A new report released by Arizona State University’s W.P. Carey School of Business says the extremes experienced by the market in recent years are becoming a thing of the past.

However, a “normal” market doesn’t mean things aren’t still trending in a positive direction.

The average single-family home price increased to $194,150 in July, which is a 30 percent increase from July of 2012.

The median price of townhomes and condos experienced an even greater jump, going from $82,000 in July 2012 to $123,000 in July 2013.

The report says the prices of townhomes and condos have increased as the supply of low-end townhomes has decreased.

“The greater Phoenix housing market has been dominated by supply constraints for the last two years,” said Mike Orr, director of the Center for Real Estate Theory and Practice at the W.P. Carey School of Business. “The shortage has applied to both houses and townhomes for purchase, as well as homes for lease, but it is most severe for low-priced homes for sale.”

The supply of homes for sale has increased significantly around the Valley. From August 2012 to August 2013, the number of listings not already under contract jumped 26 percent.

“Change is in the air,” said Orr. “Several factors are pushing the market away from the extremes and back toward normality and balance.”

To read the full report on the Phoenix housing market, visit www.wpcarey.asu.edu/realtyreports.