The median home price in metro Phoenix continued to increase strongly in March, up $6,900, from $172,000 in February to $178,900 in March (and up $62,850 from $116,050 in August 2011).
The median home price in metro Phoenix has increased 54% since August 2011 but the number of homes listed for sale still has not responded to the price increase.
The purple line in the graph below shows the number of new MLS listings per month. Compare it to the green line which is the median home price in metro Phoenix.
We’ve seen no supply response yet to the 54% increase in home prices.
The price increase, however, has lowered the quantity demanded. The total number of single family homes sold January-March 2013 is down 9% from the same period in 2012.
My forecast from January is looking good.
“I’m thinking this afternoon that the median home price in metro Phoenix could rise from its current $163,500 (December 2012), to $190,000 to $200,000 by June.”
NOTE: If you stumble upon this post in the future please keep in mind that even though the chart may be up-to-date that the text here was written in April 2013.