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Report: Homes for sale are in short supply in Phoenix area

PHOENIX — It’s a seller’s market when it comes to real estate in the Phoenix area, a new report said.

The report from the W.P. Carey School of Business at Arizona State University said demand is up slightly as so-called boomerang buyers — those who have repaired their credit after either short-selling or losing their homes to foreclosure — are coming back into the market.

“The demand is just a little bit above normal, but nothing exceptional,” Michael Orr, director of the Center for Real Estate Theory and Practice, said. “But the supply is still falling. The supply is now about 25 percent below what we would normally see.”

Orr said the supply-demand dynamic is driving up prices.

“We’re already seeing parts of town where the average sales price is above the asking price,” he said.

Orr said the seller’s market may be causing anxiety for those who are trying to buy.

“If you’ve put in 10 offers and still haven’t got a home, you’re probably getting frustrated and wondering when you will be successful.”

Orr said there is usually a lull in the market during the hot summer months, and it will be interesting to see if that happens this year.

The median price of a home in the Valley is bout $215,000, up 5 percent over last year. Orr said condos and townhomes have seen more of an increase in demand because they are the least expensive to buy. Those are up nearly 14 percent.

Homes priced $200,000 or lower seem to be the shortest in supply. Orr said buyers are more likely to be able to find a home in price ranges of above $300,000.