Sales of Arizona homes stayed flat from February to March, and have dropped 7 percent from this time last year, a real estate data company RealtyTrac reported Thursday.
Despite that drop, the median sale price has gone up 9 percent in the last 12 months.
“There’s not enough supply to meet that demand," said Daren Blomquist, vice president of RealtyTrac. "So that’s creating the situation where home prices are going up, but the number of sales are going down.”
The Tucson housing market is also seeing lower sales numbers and higher prices.
A Tucson Association of Realtors report showed home sales were 15 percent lower last month than in March 2013.
But the median price rose 8 percent and average sales price 4.5 percent in the last year.
That's because what are known as garbage properties, those selling for less than market value, came off the market and caused prices to go up.
“The prices are increasing because the market is starting to stabilize," said Kim Clifton, president of the Tucson Association of Realtors. "We have a lot of the garbage properties off of the market now. So the market is starting to have a little comeback.”
Clifton also said the lack of under-priced homes in the area is causing a drop in sales because investment buyers are purchasing fewer Tucson houses.