By Terrance Thornton | Independent Newsmedia
The numbers show the Phoenix housing market has turned a corner toward normalcy, but as the rate of bank-owned homes sold continues to dwindle so does the amount of available single-family homes.
This scarcity in available properties means an increase in property values, experts say.
“I think that is the key point actually,” said Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business at Arizona State University. “The builders, over the last five years, have been building at a far lower rate than what is justified by population growth.”
Mr. Orr opines fewer homes for sale will continue to be a determining factor of how the free market will determine real-time value throughout the Phoenix metropolitan area.
“The long-term effect is that homes will be a scarce resource for several years,” he said. “That will drive prices up until construction gets back to a normal rate.”
