Valley housing forecast includes stable pricesPosted: Updated:
PHOENIX -- Two big takeaways from a new report on the Valley real estate market: Don't expect a big swing in home prices and lenders may relax their rules a bit, allowing more people to buy.
Right now, a lot of families are still on the sidelines, lacking the down payment or the credit score to buy.
Michael Orr from the W.P. Carey School of Business expects some of them to get back in the market starting next year thanks, in part, to eager lenders.
"They want more applications, they're going to have to relax those credit rules, maybe start looking at people with credit scores between 600 and 700," Orr said.
The median home price in Phoenix is hovering around $205,000 -- up 17 percent from last year.
Orr believes prices will remain pretty stable for the next 12 months.
Orr has been a reliable source for us. A year ago, he cautioned potential buyers who may have been waiting for the bottom to fall out again.
"It is probably not a particularly good idea to wait for prices to come back down," he said. "I doubt that they will."
Orr said you always run the risk of being wrong when you try to predict the future, but he did tell us back in 2012 that the Phoenix market would stabilize in 2013 or 2014 and that seems to have panned out.
Orr's full report, including statistics, charts and a breakdown by different areas of the Valley, can be viewed and downloaded at www.wpcarey.asu.edu/realtyreports.