Home sales across metro Phoenix are on track to jump more than 30 percent during the next few months, potentially signaling the restart of the area’s stalled housing recovery.
The number of Valley houses under contract to sell started to surge in early February, according to a special report from Arizona State University’s W.P. Carey College of Business released Friday.
The biggest increase in pending sales was for houses priced between $150,000 and $600,000, and that likely signals more first-time buyers and former homeowners who lost houses to foreclosure purchasing again.
Contracts signed to purchase a house usually become sales within six to eight weeks so Phoenix-area home sales will begin to jump in March.
“It’s really encouraging for the housing market to see home sales climb the most at the lower end of the market.” said Mike Orr, director of the Center for Real Estate Theory and Practice at W. P. Carey. “Millennials and boomerang buyers are likely behind much of the increase in sales.”
Orr saw the spike in home sale contracts through his regular research of Arizona Regional Multiple Listing Service data. Pending home sales, or contracts, aren’t public record until they close and are recorded.
He said it will take a few months for higher home sales to translate into rising prices