GOOD NEWS IN THE PHX HOUSING MARKET

Up from the lowest point in April, 2009, we’ve seen

a rise in the median price from $116k to $124k.  This is a 7.8% increase in sales prices.  Of course, these prices are seen in areas where buyers were seeing homes selling for $50k.  These homes have now cleared the market place and this bodes well for the gradual increase in value…..as we have experienced in years past.  In addition, the market is clearing itself of the bank owned properties according to the Cromford Report data.

There are rumors, however, that the banks will be releasing more toxic assets at the end of this month.  The quantity remains to be seen.  As a realtor, I can only imagine what a large influx of foreclosures would once again do to our market.  I believe that if we continue to see unemployment rise we will continue to see more foreclosures.

I work with a group doing loan modifications and they are having great success.   This may be our only hope of holding the market steady while we wait for the economy to rebound.   While not everyone is a candidate for a loan modification, there are many who are.