Market in Valley rebounds in March

Housing analysts wary despite a rise of 25%

Metro Phoenix's resale housing market showed some signs of life in March as the spring selling season kicked into gear.

Sales of existing single-family homes in Maricopa County increased more than 25 percent from February to 5,385 as the market cycled out of its traditional post-holiday slowness, according to the realty studies program at Arizona State University.

The median home price increased, as well, though at a slight 2.1 percent, bringing it to $265,470.

OAS_AD('ArticleFlex_1') '); --> on error resume next MM_FlashCanPlay = ( IsObject(CreateObject("ShockwaveFlash.ShockwaveFlash." & MM_contentVersion)))

Although the increases appear to be a positive sign for the ailing market, analysts remain cautious.

"I think there's risk out there," said Jay Butler, head of the realty studies program, adding that he is more realistic about the market than optimistic.

Butler believes the resale market is running near historical norms, pointing out that March numbers were similar to the 5,340 sales of March 2002 before the boom hit.

He said the market still could be knocked off track by a number of things, including the widening of the subprime lending scandal.