Phoenix regional real estate indicators show healthy need for houses.
The question is whether prices are following the housing market's return to pre-recession conditions. New July numbers from RL Brown Housing Reports show existing home sales up 22 percent in July from last year. New home sales were up 10 percent in July vs. July 2014, and allows for brand-new house construction were up 55.5 percent. Year-to-date, new home building permits are up 39 percent versus 2014 and existing house sales are up 13 percent.
Costs, nevertheless, are not revealing the very same toughness. The typical list price for an existing house in July came in at $200,000, according to Scottsdale-based RL Brown. The median cost of a brand-new home chose $299,990 in July up 3.1 percent from a year previously. Arizona State University economic expert and housing specialist Michael Orr's analysis of June numbers likewise show need is up.
"Demand for houses is back to regular," stated Orr, director of the Center for Real Estate Theory and Practice at ASU's W.P. Carey School of Business. "March through June are constantly big months for home sales, however the numbers for June were exceptional." Permits to develop new houses are at their highest levels considering that August 2007 that right before the recession and subprime mortgage debacle annihilated Phoenix's realty markets.
Orr said brand-new homes sales were up 21 percent, traditional existing sales up 28 percent, and brief sales up 21 percent in June compared with June 2014. Bank-owned sales were down 26 percent. Orr said his numbers reveal the mean existing home price at $221,000 up $209,000, or 5.7 percent, from the same time in 2014.
The marketplace difficulty for Orr is the supply of houses. He stated active listing are 20 percent lower than in 2014. That is producing hard supply issues for novice and entry level home purchasers, Orr said. Up until now this year, house cost development in Phoenix has delayed gains in other Western cities.