Phoenix Homes Are Worth More
The average sale price of a Phoenix home rose from $195,000 in February to $204,500 in March—a tremendous 4.9% increase. The news was especially welcome to Phoenix homeowners who continue to struggle with underwater mortgages. More and more are achieving positive equity in the area due to boosts like this. Though 60% of Phoenix homeowners experienced underwater mortgages at the end of 2011, that figure has dropped by two-thirds as the housing market has recovered.
The Cause for the Jump
While these figures are remarkable, they’re partially explained by an annual increase in home sales during the spring. With the weather more temperate, March is often a good time to visit Phoenix—for tourists and homebuyers. That said, actual home sales were down 20% in March compared to the same month last year, with fewer new homes being built in the area. This lower inventory has resulted in increases in median home prices, but some analysts believe the interest to buy a home is there; people are just cautious to make the purchase. If this is true for Phoenix real estate, homeowners trying to sell may be encouraged that they just need to be patient, and homebuyers might gain a competitive edge by bidding and signing quickly.
The Future of the Phoenix Housing Market
Local analysts predict the real estate market will face its usual summer slump, as “snow birds” and other luxury homebuyers leave Arizona for a cooler climate. Home prices will likely see increases level out, but once the weather cools they should climb again. Economists have been looking at 2015 as the year when people who faced foreclosures and short sales during the recession will reenter the market as new buyers. This higher demand will be good for every housing market, especially Phoenix.
This post is presented in partnership with Edson Salas, a First Option recommended Phoenix realtor. Edson is a top producing agent in the Phoenix area – contact him today at www.equityexecs.com.
If you’re interested in purchasing, refinancing, or learning about overcoming underwater mortgages in Phoenix, simply fill out our Fast Response form or call our local branch at (480) 751-3400. Our experienced mortgage professionals would love to sit down and discuss your needs. We look forward to hearing from you!