Credit Suisse Monthly Agent Survey on Phoenix, AZ (11,859 single-family building permits in 2012, 3rd largest market in the country) housing market revealed the following —

• June traffic levels came in strong relative to agents’ expectations for this time of year, as our index increased to 65 from 56 in May (above a neutral 50). Agents noted a growing sense among buyers that they will be priced out if they don’t act soon, especially as they continue to see a shortage of inventory.
• Broad increases in home prices continued in June, as our home price index increased to 96 from 92 in May.
• Inventory levels remain tight, and the time to sell continued to decline, which should continue to give sellers pricing power.

Some comments from local real estate agents —

• The perception is that real estate is going up rapidly, which it is, and buyers need to purchase before prices exceed their purchasing power.
• Slight increase in buyer interest in suburban locations.
• Limited supply is creating a sense of urgency.
• Slightly higher interest rates, but still affordable.
• Low inventory continues to be an issue.
• Buyers want to take advantage of low interest rates and to take advantage of still-low home prices.

What’s your take?