Phoenix housing market still bruised, but recovering

The Phoenix-area housing market still has plenty of bruises from its recent knockdowns, but some of those wounds may be starting to heal. Foreclosure sales, short sales and real estate investors still make up the bulk of current home sales in the Phoenix area. But the number of traditional and new home sales is increasing compared with last year, according to Michael Orr, a real estate expert and economist at Arizona State University’s W.P. Carey School of Business. Orr said more traditional and first-time home buyers are helping the overall marketplace. He sees some promise in East Valley markets like Gilbert and Chandler for new home sales. Orr said traditional home buyers, who can qualify for mortgages, are having a hard time buying resale homes because they are bidding against investors who have cash ready to buy properties. “They are competing against cash bids,” Orr said. That is resulting in families and other home buyers turning to new home builders where they don’t have to compete with investors and flippers. Orr said that trend is most pronounced in the East Valley, where there has been land available and homes in middle class price ranges between $175,000 and $300,000.

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