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.
- Workers comp: Signs your co-worker could be a fraud
- Who's the real founder of America's pastime?
- Epidemic rising? What you need to know about Alzheimer's in Arizona
- 5 unforgettable Wooden Award winners
- Family and hard work are keys to success of modern dairy farmers
- Genetic testing could hold answers for colon cancer survival
- Cold beers and baseball: A beer lover's guide to Spring Training
- Telecommuting: 5 tips to make it work for employers and employees
- See how top CFOs feel about economic growth in the Valley
- Migraine myths that keep patients from effective treatments
- Here’s why Gaydos went tankless with his water heater
- Bocce ball and basketball: How you can help Arizona's Special Olympics athletes
- Tips on building the best wine room in Arizona
- Avoid the nightmare: 6 tips to choose a great contractor
- Breast cancer: Improved testing and treatments means more survivors
- Failed back surgery: New hope for patients living in pain
- Ticking time bombs: Telltale signs your water heater is about to explode
- Reading glasses could be a thing of the past
- 6 cool ways teachers are using technology in the classroom
- Emerging tech jobs in Phoenix and how to get one in 2017
- 4 top treatments athletes use for pain
- Emergency! What to do when bathrooms flood
- Arizona kids in crisis: How you can help
- New treatment offers hope for migraine sufferers
- 11 stadiums to watch your favorite football team
- Shopping for a TV? Best models for 2016
- Avoid this holiday plumbing disaster in your home
- 7 tips to avoid holiday weight gain
- New treatments mean better prostate cancer survival rates
- 5 of the scariest things found in drains