Metro Phoenix home prices and sales climbed in May. Here’s what to expect this summer


Metro Phoenix home prices and sales climbed in May, and both are poised to increase again in June.The Valley’s median home price increased $10,000 to $435,000 last month, according to the Arizona Regional Multiple Listing Service.The area’s median is expected to hit $440,000 in June based on pending sales.Home sales in metro Phoenix jumped 21% in May to almost 7,900.A tight supply of houses for sale in the Phoenix area is offsetting some of the market’s slowing due to higher interest rates.The Valley’s housing market started cooling last May after mortgage rates climbed above 5%. The current rate for a 30-year fixed mortgage is 6.7%, according to Freddie Mac.Metro Phoenix’s median home price hit a record $475,000 last June but started to fall in July. It dropped to $410,000 in January but has been climbing since as supply has fallen.The number of Valley houses for sale dipped 5.4% in May to about 15,100.“Current pending sales data suggests the median sales price for closed sales will peak at $445,000, most likely sometime in early July,” said housing expert Tom Ruff of ARMLS’ Information Market group.Then the market is expected to start its “seasonal wobble,” he said.Metro Phoenix’s housing market usually cools in the summer until the fall, and May is typically one of the strongest months for home sales and price increases.“The typical summer slowdown is coming,” said Tina Tamboer, Cromford Report senior housing analyst. “But it’s still a seller’s market.”She said areas of the Valley the farthest out will slow first.Reach the reporter at catherine.reagor@arizonarepublic.com or 602-444-8040. Follow her on Twitter @CatherineReagor.

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