Although many people may find it hard to believe, the Phoenix area is facing a growing housing shortage, according to real estate experts Mike Orr and Mark Stapp from the W. P. Carey School of Business, who were featured speakers at a forum on April 6. And, the future may bring more dense developments and urbanization of the suburbs.
In a market with chronic supply shortages, normal demand can drive prices up. That continues to be the case in the Phoenix market, according to Mike Orr, director of the W. P. Carey School’s Center for Real Estate Theory and Practice and author of the monthly Phoenix housing report. After a mid-winter lull, housing prices are climbing again, further dampening what was already waning investor interest. And that upward pricing trend may be one reason homebuilders are in no hurry to increase production, despite buyer interest: waiting should mean getting more for new homes.
Supply in the Phoenix real estate market rose during January, but only slightly, according to Mike Orr, author of the monthly housing report from the W. P. Carey School of Business. The long-term shortage continues, with only about 50 percent of the active listings that we would expect to see in a normal market. Home building is beginning to pick up, but for now, the first time buyer continues to face fierce competition for a small number of homes. The trend is for prices to continue to rise at a brisk pace across most sectors, despite the brief hiatus reported for January.
The handshake: it's symbolic of making a deal, but it's also a gesture of friendship. In this month's news update you'll learn about former classmates who successfully completed a major deal, and another who's moving into leadership in an important business organization. Our news update articles are intended to be the space where you'll find out about what's hot in the W. P. Carey School's real estate programs and what's happening in your businesses and careers – your virtual coffee shop!