PHOENIX — Housing prices in Phoenix are going to continue to rise over the next few months while listings remain scarce, new statistics from the Arizona Regional Multiple Listing Service indicate.
In ARMLS' monthly report for March, housing sale prices are up over 20% year-over-year.
According to ARMLS data, the median sales price in Phoenix reached $460,000 and is possible to increase to $475,000 by mid-May. The average sales price in the city is up 21% year-over-year and the median sales price is up 28%.
The listing service forecasted even more increase for both average and median sale prices in April.
ARMLS data also reported a steady decline in listing inventory. Total housing inventory in Phoenix decreased by 1.2% month-over-month and dropped 6.1% year-over-year.
The report stated 3,918 newly built homes sold in the first quarter compared to 4,444 in the same time frame last year and newly built home sales in Maricopa County are down 11.87% year-over-year.
According to the Cromford Report, which analyzes the real estate market, demand is about 17% above normal for this time of year, while supply is down 75%.
With an increase in sale prices, mortgage rates have been on the rise as well.
The Federal Reserve recently raised interest rates, but home mortgage rates have been rising faster and higher since the beginning of the year.
After years of rock-bottom interest rates due to the pandemic, the Federal Reserve is now trying to reign in an economy flush with cash and lacking in supply, especially in the housing market.
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