Article by Bob Trent – The Phoenix real estate market, like the weather, is heating up.
Buyer demand continues its strong rebound after a tepid 2014. Home sales in the first quarter of 2015 were up 10.5 percent compared to last year, and that’s after a January that had many real estate agents considering a career change.
In March, 7,900 homes sold, an improvement of 17.7 percent from a year ago and up almost 32 percent from February. That makes the second month in a row with a 30 percent increase in buyer demand! All this is great news if you are selling a home.
If you are trying to buy a home, that’s where things get interesting. What we want to see with two consecutive months of huge increase in buyer demand is an equal increase in homes coming on the market. That’s just not happening.
In March, new home listings were actually down 2 percent from last year, though there was an 11.6 percent increase from February. That means homes are selling faster than they are coming on the market — not good news if you are looking to buy a home.
So far, the higher demand and lower supply of homes has not dramatically driven up prices. The median price for a home in the Valley rose just 7 percent over the last 12 months. Other trends indicate that may change.