Home prices in the Phoenix area are up nearly 34% over last year at this time! New homes sales are up 85%!
The overall number of active single family homes as of Nov 1st was 12,500 in the greater Phoenix area. It may sound like a large number, but this is actually a low number for the Phoenix area. About 3/4 of these homes are priced at $150,000 or above, so ordinary buyers in the lower price range are facing rough competition.
The shortage of these lower priced homes is a result of less distressed homes on the market. Almost half of the homes under $150,000 sold in October were cash transactions and almost 30% were investor purchases. These factors have had a domino affect on the new home market in the valley. In October new single family home sales topped 1000, the first time since 2010.
This is great news for the real estate market in Arizona. It is still a great time to buy in Arizona as home prices are still a great deal compared to a few years ago, especially in the higher end housing market.
Feel free to contact me if you are in the market for a home in Arizona