Housing pricing for Maricopa County is steady, but per new ASU research, the Phoenix real estate market may be on the edge of another shortage.
Conversely, single family home sales were down 20per cent from May 2013. This means if prices flatten, then if demand increases, prices could also increase.
Per Michael Orr, demand has been much weaker since July 2013. “The slight recovery in demand that had been developing over the last two months dissipated again in May,” Orr said. ” While move-up homeowners and second-home buyers are starting to compensate for the departure of investors who went to other areas of the country for better bargains, activity by first-time home buyers is still unusually slow.”
The multifamily market is up, construction permits are up and rental demand is strong. The supply of single family homes for rent are down to 32 days.
Cash buyers still are at 25 percent of market, while the normal range is only 7-12 days.
Bottom line, lending still has a long way to recover.