Valley home prices reach 2003 levels - USATODAY.com

Metro Phoenix home prices continued to rapidly climb in May.

Median home price up in all categories.

An Arizona State University report shows the median price for single-family homes in the Phoenix area rose in May compared with a year earlier.

The median sales price of a home in the region is up 32percent from May 2011, according to the latest report from W.P. Carey School of Business at Arizona State University.

In May alone, the cost to buy a Phoenix-area house climbed 7percent to $147,000. The region's home prices have rebounded back to early 2003 levels.

More regular buyers and investors coupled with a shrinking supply of homes for sale are propelling metro Phoenix home prices.

ASU housing analyst Mike Orr said in his report that "high demand and low supply" remain the dominant factors in Phoenix's housing market.

The number of homes for sale in the area is down 50percent from May 2011. Currently, 8,550 homes are listed for sale and don't have pending contracts from buyers.

Moderately priced homes continue to draw the most buyers and bids.

"Most houses below $250,000 priced realistically are attracting large numbers of offers in a short time, and many exceed the asking price," said Orr, director of the Center for Real Estate Theory and Practice at W.P. Carey School.

He said a Chandler home recently received 84 offers, and a Glendale home received 95.

The Glendale house closed within four weeks for 17percent higher than the listed price.

"Needless to say, this is not something we would see in a normal market," Orr said.

He said metro Phoenix home prices can't continue to climb at the "extremely fast rate" they have in the past few months.

"The most likely time for prices to stabilize is during the hot summer months of June through September," said Orr.

By Catherine Reagor, The Republic|azcentral.com Jun 28, 2012


Valley home prices reach 2003 levels - USATODAY.com