PHOENIX — It’s starting to look like Valley home prices aren’t likely to go up for the rest of the year.
For the second month in a row, the median price for a single-family home in the Phoenix area is sitting at just under $205,000.
Lower demand for homes is the reason. Michael Orr, director of the Center for Real Estate at ASU’s W. P. Carey School of Business, said that local home sales actually dropped 16 percent between April 2013 and one year later.
“We started slowing down from August onward last year,” Orr said. “We’ve now got to the point where the total number of sales for the year so far is the second-lowest since 1999.”
Orr said that two groups of people are driving the lower demand.
“One is those people who have been through a foreclosure or a short sale who have been locked out because of their credit being effected,” he said. “And then there’s the younger generation, particularly the Millennials between 20 and 30.”
Orr said the younger group is putting off a lot of major milestones until later in life, including buying a first home.
The supply of available homes in the Valley has increased of late. As of May 1, there were 73 percent more active listings in the Phoenix area than there were at the same time a year ago.
Despite the slowing of sales, Orr said that the Phoenix real estate market is healthy, and there’s little chance of a crash like that seen during the recession a few years ago.
- The best places to celebrate Fall in Phoenix
- Infamous athletes who did the most time for their crimes
- 2016 baseball highlights, bloopers and blunders
- See how CFOs really feel about business in the Valley
- The best television shows on the internet
- A preseason guide to avoid holiday weight gain
- The 5 worst things you could do for your roof
- 6 coolest things brewing in Arizona
- The virus that keeps head and neck cancers on the rise
- State Fair ‘Kid Reporter’ has all the angles covered
- 4 important things to know about timeshare maintenance fees
- Signs of delayed car crash injuries
- The truth about sports concussions
- The Alzheimer's epidemic: Facts you need to know
- The season is here, keep your Fantasy Football team strong all season
- 8 TV shows you can't miss this fall
- Football is here: 6 tips to make this your best season ever
- Gameday recipes and beers to match
- 6 reasons the Cardinals are driven to win the Super Bowl
- The Pac-12 football season nears kickoff
- Tips to get ready for a pain-free golf season
- Protect your family with these 7 home security features
- How to train like an Olympic swimmer
- 2016 Olympics: A guide to must-see TV events
- The bride's guide to feeling your best on your wedding day
- Deciding when you need knee surgery
- Celebrating Fourth of July is much cooler in these AZ towns
- Top ten road trip bathrooms in America
- Six things causing a pain in your neck
- 5 things to make your summer move easier