Another price increase reflects different mix of homes for sale

Housing prices rose in the Phoenix market in March, signaling a shift in the mix of what is being sold, according to Michael Orr, author of the monthly resale real estate report from the W. P. Carey School of Business. It’s a complex market, still extremely out of balance with supply extremely low. Eventually, the market will find that magic spot where prices are high enough to coax more sellers to the game

Housing prices rose in the Phoenix market in March, signaling a shift in the mix of what is being sold, according to Michael Orr, author of the monthly resale real estate report from the W . P . Carey School of Business. Fewer low-price foreclosed properties are moving through the market, Orr explained. Median and per square foot price is moving up as traditional sales account for a greater percentage of activity. It’s a complex market, still extremely out of balance, he added. Supply in March was even more restricted than it was in February, which pushed prices up. Eventually, the market will find that magic spot where prices are high enough to coax more sellers to the game. The whole market changes character as prices rise, Orr said, and that is the mechanism that will bring Phoenix back in balance. For background on the dynamic relationship between real estate and the economy, read or listen to our Real Estate Round Table.

March 2012: Analysis and Data [podcast]