“The perfect storm is here, and with mortgage interest rates so low, buyers should expect home prices to continue to rise unabated,” Belfiore said.
Inventory continued its downward trend to 1.5 months of inventory, with less than 25% of current listings priced at $300,000 or less, said Thomas Brophy, national director of research and analytics for Colliers International.
Even despite the surge in prices, the average home sales price in the Valley in June was $305,000 — about $70,000 less than the national average sales price — while the median price was $368,600, according to the Arizona Regional Multiple Listing Service.
Demand has never been higher, Brophy said,
“Not only is demand accelerating, and this is true across both single and multifamily product types, but mortgage rates have continued to remain at or near all-time lows,” he said.