Phoenix Housing Market Through May 2012

For those of you who are wondering what the facts are on the valley’s real estate market values, this will be a quick primer.

Despite national news or even the local news stories (shadow inventory, prices dropping, foreclosure wave coming, etc.) the fact of the matter is prices have been marching upwards at a record pace the last 3 months. The price per square foot since February 16th has jumped from $85.62 to $98.81. In three short months that is an appreciation of 15.4%. On an annualized basis that would equate to 61.6%. Yikes! This jump can be attributed to the scarcity of inventory – which had been dropping dramatically since the beginning of the year.

Do we think the market will continue appreciating at that clip? No. Inventory appears to be stabilizing – and price appreciation seem poised to do the same in June. But appreciation seems to be the theme for this year – so although we don’t expect the rate to hit a dramatic 61% we do expect it to continue its upward climb.

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