Dive Brief:
-
After a brief post-recession comeback, the Phoenix housing market is losing steam. Sales of single-family homes have dropped by 19% in a year, according to an Arizona State University housing expert.
-
Still, the average home price in the Valley of the Sun spiked 8% in the same time period, largely because luxury homes are outselling lower-priced abodes.
-
Along with stagnant population and job growth, more young Phoenix residents are opting to rent instead of own, a trend that is pushing apartment construction in the city slightly upward.
Dive Insight:
ASU’s Michael Orr predicts prices “will move sideways or slightly down” for the rest of the year “until supply and demand get back into balance.”