Greater Phoenix Housing Market Update

Michael Orr, DirectorCenter for Real Estate Theory & Practice

May 6, 2015mike.orr@asu.edu

March 2015 Homes Sales Were Up 17% from March 2014

Rank 14 of 17

Rank 8 of 17

Rank 12 of 17

LONG TERM AVERAGE

Overall Demand is Back to Normal

Entry Level Housing Supply Shortage Is Clearly Evident

Chronic Housing Supply Shortage

Not a Problem for Homes Above $500,000 or Rentals Over $2,000

Reaching Extremely Low Levels Below $200,000 or Rentals Below $1,200

Home Prices Are Now RisingExpect 5% During 2nd Quarter

Range bound Dec 13 – Nov 14

Situation Summary – May 2015

• Supply is well below normal (79% of normal) • Demand is now normal & stable (102% of normal)• AZ loan delinquency below normal at 4.4%• Foreclosures below long term average• Lending rules starting to loosen• Mid range market heating up• Very high end market still very strong• Economy and jobs continue to improve• General optimism prevails• Low end supply a major concern