Phoenix Home Prices Rise 32 Percent

The current buyer’s market in Phoenix has become a lot more competitive, with real estate prices climbing over the past year. According to an article in the Phoenix Business Journal, home prices surged 32 percent over the last year. While this should be wonderful news for people waiting to sell their properties, analysts think that the incredible growth in prices will diminish and that the growth in prices will become more stable before year end.
Fast Growth Rate
North Phoenix is without a doubt no foreigner to fast growing home prices, but the growth over the last year comes on the heels of a real estate market that was flat or worse for a very long time. Consumer interest in single-family homes has brought about the average price increase of 32.4 percent in Maricopa and Pinal counties.
The growth rate has also helped inspire an upward rise in the prices of condos and townhouses, with the average prices of those properties in the same counties going up an amazing 37.3 percent over the same period.
Inventory Buying A House Signing Contract Down
At the same time that the prices have surged, the amount of inventory on the market has gone down. Results of this drop in inventory, in conjunction with the growth in prices, has been a more aggressive buyer’s market in the area, according to the How Does Selling A House Work With A Mortgage report. In fact, the report confirms that, in both Maricopa and Pinal counties, the number of single-family home sales was down 5.8 percent and there was only 50 percent of the properties on the market compared to what was available one year ago.
Lower Priced Properties Attracting Interest
The article reveals, those homes that are priced below $250,000 were receiving many offers and receiving those offers quickly. To accentuate this point, the article notes that a property in Chandler obtained 84 offers and a home in Glendale obtained 95 offers. That home in Glendale sold for 17 percent above the asking price and the deal had closed within four weeks of it being put on the market.
Investor demand has been accelerating these prices, which is also sparking new business for builders constructing new homes. In Maricopa County and Pinal County, new home sales increased 57 percent compared to this time last year.
Great News for Foreclosures
The foreclosure rate has also fallen drastically since last year. The number of completed foreclosures fell 52 percent in May 2012 compared to May 2011, though there was an increase in the number of foreclosure notices sent out. With that, the amount of foreclosures actually being executed was far below the number of completed foreclosures during the worst time of the real estate crash.
Phoenix homeowners who are looking to put their homes up for sale have appreciated steadily growing home values over the last year, which means the buyers out there seeking to get into a new home may find themselves with a good bit of competition for the home they want to buy.

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