By Philip Haldiman, Editor-in-Chief | Dealmaker
March was a good month for homes sales in the Valley, particularly townhomes and condos, which went up 51 percent from February and 27 percent from March 2014, a new study from the W. P. Carey School of Business said.
Single-family sales went up 39 percent over February and 16 percent year-over-year.
Mike Orr, director of the Center for Real Estate Theory and Practice and author of the report, told Dealmaker buyers increased but supply remains tight.
The number of properties for sale is falling in the low- and mid-ranges, with supply abundant only in the luxury sector, he said.
“Expect prices to rise in response, but not dramatically,” Orr said. “Condos are selling because of increased interest from wealthy people wanting to live in lock-and-leave condominiums instead of single-family homes.”
Demand is also up because of boomerang buyers. The report said activity from this group is expected to peak in 2017 and 2018, when Millennials, who have remained reticent from buying, may come more into the fray.
Demand for low-priced housing is up, but is “barely adequate” in the mid-range from $200,000 to $500,000, Orr said.
Also in March, an improvement for homebuilders — In Maricopa and Pinal counties 1,438 permits were pulled, an increase of 43 percent compared to last March, which was the highest March total since 2007, the report said.
Other report findings:
Median sales price is up 5.9 percent from $204,900 to $217,000.
Average price per square-foot is up 2.2 percent from $129.31 to $132.15.
Active listings excluding homes under contract fell 6 percent during March in contrast to March 2014, when the year-over-year decline was just 1 percent.
