Phoenix market will likely level off

Housing markets across the nation are beginning to recover, and Phoenix is rated as the second best summer real estate market to invest in. As the prices of homes are climbing, experts say the rates will level off in the coming months.

The Arizona Regional Multiple Listing Service and the Center for Real Estate Theory and Practice at Arizona State University’s W.P. Carey School of Business released reports on August 9 that showed home prices will likely remain much higher than their levels during the previous year. Real estate in Phoenix and its surroundings experienced a year-over-year change.

In Casa Grande, the average sales price in the second quarter showed an 8.8 percent gain over the same time last year, which is the lowest increase in the region. Pinal County, where Casa Grande is located, and Maricopa County together posted a 29.3 percent gain from June 2011 to June 2012.

“With the slowdown in price increases, appraisals have had a chance to catch up, so appraisals are now coming in closer to current market value,” said Mike Orr, director of the Center for Real Estate Theory and Practice. “However, the situation for the average homebuyer remains dire despite extremely low interest rates and still-cheap prices by any historical standard.”