Arizona Real Estate Market

Surging interest in attached homes has the potential to change the character of the city, adding urban density to the sprawling metro area.

Reporting on President Barack Obama’s January 8 visit to Phoenix, USA Today quoted Mike Orr, director of the Center for Real Estate Theory and Practice, on the president’s announcement that FHA mortgage insurance rates will drop.

The Phoenix metro area has a history of rapid price increases and breath-taking drops, so to longtime observers the currently calm market may seem — well — dull. But experts at the “Phoenix Housing Market Explained III,” hosted by the W. P. Carey School of Business and The Arizona Republic on January 17, said the time for optimism is here.

There has been little change in the Greater Phoenix real estate market for the last year, and the October numbers show a continuation of the trend, according to Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. The median single-family-home sales price went up just 4 percent from last October to this October – from $200,000 to $208,000. Demand remains lower than last year, with sales of single-family homes down 5 percent from last October. With the New Year just days away, we asked Orr what it would take to give the market a strong start in 2015.

In the subdued Phoenix real estate market, demand continued weaker than normal, supply was tight and sales transaction volume well below normal. In contrast, the rental market is busy with construction projects in the works to increase supply. And, demand at the very top of the market remains stronger than usual.