Median home price expected to continue to rise

The average number of days a single family home is on the market in the Phoenix metro has decreased by 23.6% in the last 6 months, according to data from the Arizona Regional MLS. At the same time, the median sold price has continued to increase, reaching $155,000 in July 2012 - the highest since November 2008.

The shrinking amount of time it takes to sell a home can sometimes be attributed to the shrinking inventory. Lawrence Yun, NAR chief economist, notes, “as inventory has tightened homes have been selling more quickly”, and this dynamic is contributing to “sustained price growth”.

Back in April 2012, Yun said that rising prices indicate the housing recovery is underway. As inventory continues to dwindle, the current forecast from NAR “is for the median existing home price to rise 4.5 to 5 percent this year and about 5 percent in 2013” nationwide; and “stronger price increases” are expected in areas such as Phoenix because of the tight supply of housing inventory.