PHOENIX — The Valley housing market is hitting a point of stagnation because of a lack of demand, an Arizona State University professor said.
W.P. Carey School of Business professor Michael Orr said weak demand is causing potential sellers to cancel their listings.
“We’ve really got low demand from people who would normally be buying their first home.”
Demand is down 20 percent from a year ago, while single-family new home construction and sales are 65 percent below normal in the Phoenix area.
Despite the lack of demand, the median single-family home sale price is up to $205,000, an ASU housing report said.
“Exactly a year ago, it was $185,000, so it’s actually gone up 11 percent since then but that’s actually falling quite fast,” said Orr, who expects the tide to start turning in the spring.
“I think the rest of this year is going to remain relatively quiet and not see any dramatic changes.”
Sales of townhomes are down 20 percent from May 2013. Sellers also appear to be waiting to list their homes until buyers have a greater sense of urgency.
Orr believes families are choosing to stay in their homes longer than they did 10 to 15 years ago. They may be stuck with negative or little equity in their homes or they may want to stay to keep their low mortgage interest rates.
- Stretches and exercises for carpal tunnel syndrome
- The best Major League ballparks have their own personality
- Comparing the best regular seasons: The '96 Bulls and '16 Warriors
- 3 Arizona road trips and the vehicles to get you there
- Colon cancer is preventable. Check these signs and symptoms to stay healthy.
- 6 of the biggest skin cancer myths
- Affordable small home makeover ideas
- Locals helping locals: 6 success stories you need to know about
- Sunscreen facts that could save your life
- 6 energy saving hacks for your home
- 5 tips for choosing a company to end your timeshare
- Overlooked water tips to save you money
- 5 of the most adored gentlemen in professional sports today
- The real danger of sitting at your desk
- Most surprising NBA playoff performances of the last 40 years
- 11 classic baseball movies you must see again
- Finally getting rid of fat: 3 methods that actually work
- 4 reasons cancer survivors should focus on food
- 5 spring cleaning spots everyone forgets
- 5 reasons to look forward to watching the D-backs this season
- Common virus attributed to spike in head and neck cancers
- 5 signs it’s time to end your timeshare ownership
- 3 most overlooked ways to keep your home healthy
- 6 ways the air in your home could be making you sick
- CrossFit dangers: 5 common injuries and how to deal with them
- Today's radiation treatments offer better success, fewer side effects
- Tips to make watching TV on the patio even better
- What really happens when you donate to a community college?
- Sun and skin cancer: Separating fact from fiction
- 5 critical lifestyle changes for a healthy colon