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.

Phoenix home prices continued to rise in April, up 25 percent over last year, although the number of homes sold declined. A change in the mix of homes for sale and continuing tight supply is contributing to the increase in price. But, prices have not yet reached the point where greater numbers of sellers will be lured into the market. Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School of Business, collects and analyses the data monthly.

In the Phoenix resale home market, supply is tight – especially for lower-priced properties — and prices are on the rise, said Mike Orr, director of the Center for Real Estate Theory and Practice at the W. P. Carey School. In his presentation at the Annual Economic Outlook luncheon, Orr said that homebuilders will need to find a solution to the labor shortage in order to meet demand. The event is the finale of the 2011-12 season of the W. P. Carey School’s Economic Club of Phoenix.

Housing prices rose in the Phoenix market in March, signaling a shift in the mix of what is being sold, according to Michael Orr, author of the monthly resale real estate report from the W. P. Carey School of Business. It’s a complex market, still extremely out of balance with supply extremely low. Eventually, the market will find that magic spot where prices are high enough to coax more sellers to the game

Arizona real estate is often described as driving the economy, but is that true? Economist Dennis Hoffman and real estate experts Mark Stapp and Michael Orr discuss the role real estate has played in the cyclical Phoenix economy. Supply right now is low; in the past when supply was tight, builders could field crews quickly in response to demand, but policy changes mean that inexpensive labor will be in short supply too. If supply continues to be skimpy, will it affect overall recovery?

You could say that Phoenix is a seller’s market this spring, although there’s very little real estate to buy. Real estate expert Michael Orr reports that with interest rates low, the economy beginning to stir and prices still very affordable compared to salaries and rental rates, a swift recovery could be in the cards. But supply is so tight that “buying a house is often quite a struggle.” After years of churn, the market is finally in focus, but it’s out of balance.