Metro Phoenix’s housing market experienced a jump in the housing market The area’s median home-sales price climbed almost $10,000 in March from February.
The median price for March was $204,500, up almost 4.9 percent compared with $195,000 in February, according to a new report from the W. P. Carey School of Business at Arizona State University.
March’s higher home prices came as part of the traditionally busy spring sales season for metro Phoenix. Increases likely will continue through May says the report.
February’s median price had been the lowest median sales price reported for the region in seven months and despite the bump in home prices in March, the number of sales is still far behind last year’s pace. Home sales were down 20 percent in March compared with the same month a year ago.
Demand for Valley homes will continue to rebound more strongly next year, but a recent drop in mortgage rates and lenders making mortgages available to more buyers could help the housing market over the next few months.
The average rate for a 30-year mortgage fell to 4.18 percent this week, according to real estate research firm Zillow. And in mid-April, the Mortgage Bankers Association’s survey indicated it was the easiest time for borrowers to get mortgages in the past three years.
Median metro Phoenix home-sale price likely will fall again during summer, when luxury, snowbird and active-adult home buyers retreat from the area’s heat.
We may still be looking at little to no annual price appreciation by the end of the year though so we will have a level market as we finish out the year.
On the horizon we see a big wave of buyers who lost homes to foreclosures and short sales during the recession should be back in the housing market starting next year, boosting demand and prices in metro Phoenix.
So stabilization is the key word for the first half of 2014 and will continue till 2015.
Stay tuned for more…
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