If the housing market is a prime indicator of how the overall economy is doing, than Phoenix is getting good news: housing prices are going up while the number of foreclosures is decreasing, according to the local ABC affiliate. Adding icing on the economic cake, new home sales are increasing.
The latest housing statistics come from an Arizona State University W.P. Carey School of Business report written by Mike Orr.
According to Orr’s report, the cost of a median single-family home has increased approximately 20 percent since last March. Additionally, there was a 35 percent increase in new-home sales during the same period.
Orr attributes the uptick in new home sales to an unbalanced market in which buyers outnumber sellers. Also, the houses on the market are higher-priced, encouraging potential buyers to consider purchasing a new home.
However, there is a down side to the increase in home buying. It means the bargain rates house hunters enjoyed during the depths of the housing crisis that began in 2008 are slowly dwindling.
The type of home purchase also seems to have changed, however. According to the report, lender-owned sales are down 61 percent from the last year, translating into an increase in other types of sales such as resales, investment homes that have been “flipped,” and short sales.