Report: Home Prices Have Peaked
A new report said housing prices in metro Phoenix may have peaked and are dropping off a bit. Mike Orr of the WP Carey School of Business at Arizona State University said the median price of a single family home fell to $197,000 between December and January, a drop of 4 percent. Orr said that is still 21 percent higher than last January.
“I think we’ve had the end of the big rebound and we’re back into a more normal market with the advantage in negotiations swinging towards the buyer," said Orr.
With fewer foreclosures than normal in Phoenix, and delinquency rates on home loans very low, Orr said prices are not likely to drop rapidly. He said the demand for homes in metro Phoenix is at its second lowest level in 14 years.