1. Greater Phoenix Housing Market Update Michael Orr, Director Center for Real Estate Theory & Practice May 6, 2015 mike.orr@asu.edu

2. March 2015 Homes Sales Were Up 17% from March 2014

3. Rank 14 of 17

4. Rank 8 of 17

5. Rank 12 of 17

6. LONG TERM AVERAGE

7. Overall Demand is Back to Normal Entry Level Housing Supply Shortage Is Clearly Evident

8. Chronic Housing Supply Shortage Not a Problem for Homes Above $500,000 or Rentals Over $2,000 Reaching Extremely Low Levels Below $200,000 or Rentals Below $1,200

12. Home Prices Are Now Rising Expect 5% During 2 nd Quarter

13. Range bound Dec 13 – Nov 14

14. Situation Summary – May 2015 Supply is well below normal (79% of normal) Demand is now normal & stable (102% of normal) AZ loan delinquency below normal at 4.4% Foreclosures below long term average Lending rules starting to loosen Mid range market heating up Very high end market still very strong Economy and jobs continue to improve General optimism prevails Low end supply a major concern Supply is well below normal (79% of normal) Demand is now normal & stable (102% of normal) AZ loan delinquency below normal at 4.4% Foreclosures below long term average Lending rules starting to loosen Mid range market heating up Very high end market still very strong Economy and jobs continue to improve General optimism prevails Low end supply a major concern