Phoenix housing prices: Temporary cooling trend expected this summer

The imbalance created by high demand and low supply continues to be the dominating factor in the greater Phoenix housing market, according to Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. With summer in full swing, Orr expects rising prices to stabilize as buyers take time off from the hunt but according to the rules of economics one would expect the price increases to resume in the fall.

The imbalance created by high demand and low supply continues to be the dominating factor in the greater Phoenix housing market, according to Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business. With summer in full swing, Orr expects rising prices to stabilize as buyers take time off from the hunt. Rising prices have attracted more sellers to the market, but not enough to balance out demand, so according to the rules of economics one would expect the price increases to resume in the fall. Here’s Mike Orr discussing the current situation. [podcast]