Phoenix Buyers Hesitate On Higher Prices
With no weather to blame, Phoenix area home resales may be running out of momentum. "The Arizona Real Estate Center Tuesday reported that the resale home market declined to 8,735 sales in April 2005 from 10,035 in March 2005, but well ahead of the 7,250 sales recorded in April 2004."
This is starting to sound like a coastal market, just without any water. "And with the increase in sales activity comes the continued hike in the median sales price, up 35 percent from $164,000 in April 2004 to the current $221,000."
A 35% increase sounds a little parabolic to me, but not to Jay Butler, director of the Arizona Real Estate Center. "The ever-higher home prices tend to sustain optimistic growth assumptions about the market, thus, both investors and owner-occupants seem to be buying on future expectations of continued appreciation."
"Butler cautioned that the higher home prices are seriously impacting affordability, especially for first-time home buyers."