by Catherine Reagor – Jun. 27, 2012 The Republic | azcentral.com
Metro Phoenix home prices continued to rapidly climb in May.
The median sales price of a home in the region is up 32 percent from May 2011, according to the latest report from the W. P. Carey School of Business at Arizona State University.
During last month alone, the cost to buy a Phoenix-area house climbed 7 percent to $147,000. The region’s home prices have rebounded back to early 2003 levels.
More regular buyers and investors coupled with a shrinking supply of homes for sale are propelling metro Phoenix home prices higher.
ASU housing analyst Mike Orr said in his report “high demand and low supply” remain the dominant factors in Phoenix’s housing market.
The number of homes for sale in the area is down 50 percent from May 2011. Currently, 8,550 homes are listed for sale and don’t have pending contracts from buyers.
Moderately-priced homes continue to draw the most buyers and bids.
“Most houses below $250,000 priced realistically are attracting large numbers of offers in a short time, and many exceed the asking price,” said Orr, director of the Center for Real Estate Theory and Practice at W. P. Carey School.
He said a Chandler owner recently received 84 offers, and a Glendale owner snared 95.
The Glendale house closed within four weeks for 17 percent above the original asking price.
“Needless to say, this is not something we would see in a normal market,” Orr said.
Metro Phoenix home prices can’t continue to climb at the “extremely fast rate” recorded in the past few months.
“The most likely time for prices to stabilize is during the hot summer months of June through September,” Orr said.