Researchers at Arizona State University say that the rising interest rates don’t appear to be affecting the Phoenix-area housing market, which is making a comeback.
A report from the university’s W. P. Carey School of Business shows the median single-family home price in the area rose to $190,000, up roughly 27% from last June when the price hovered around $150,000. The report also noted the median price for condominiums and townhomes went up dramatically to $125,000, a nearly 40% increase.
Researchers say the tight supply of homes for sale is partly causing the increase in prices, and that new home construction isn’t keeping pace with demand. According to the report, analysts expected 17,000 construction permits would be issued this year, but the region is only on track to see about 12,500.