Phoenix area housing market gaining ground, new data show

Frenzied home-sales activity in June proved earlier speculation about a third dip in metro-Phoenix home prices to be untrue. The median price of an existing home in the region climbed to $118,950 last month, after hovering at a real-estate crash low of $115,000 for six straight months, according to the Information Market, a realty-data company. The rate of home sales also rose, with a nearly record 9,450 used and new homes sold in Maricopa County in June, the largest monthly number since the end of housing boom in December 2006. And that number doesn't include the more than 1,300 homes sold at foreclosure auctions by lenders. The home-sales market has been dominated by foreclosure homes, but foreclosures also declined. The region had 2,000 fewer active foreclosure filings in June than May. At the same time, the number of homes for sale was down nearly 10 percent from May. The combination means a decrease in inventory, as more foreclosure homes are resold and fewer homes come on to the market to replace them. That drop in supply helps trigger an uptick in prices. Market indicators started to show signs of a recovery in March. The recent numbers are a further confirmation. "Supply continues to drop while demand is extremely strong," said real-estate analyst Mike Orr, who publishes the online daily "Cromford Report."

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