PHOENIX FORECLOSURE NEWS

I was recently in New York and had lunch

with a young man, who is in commercial real estate (former Phoenix resident).  We spoke about the housing market in Phoenix and what our predicitions are regarding same.  He is of the mind that we have not yet seen the bottom of our home pricing.  You know what they say about opinions…..

An article in the Arizona Republic recently says pretty much the opposite.  The article quotes the “Cromford Report”, which I read and feel is a good barometer of our market.  While new housing starts are still off significantly from 2005, we are seeing an emptying of current spec inventory.  Building permits have picked up slightly as well.  December numbers will be telling.  However, keep in mind that the holiday season is typically slower….people are preoccupied.

The foreclosures have dipped in the valley as well.  As first time home buyers enter the market (due in part to the tax credit scenario), investors are also back to buy up the distressed properties, fix, repair, perhaps rent and then sell.  Once again, house flipping is in vogue, and not just for low end homes.  There are some truly amazing properties out there that can be bought for a song.

Keep in mind that if you are an FHA buyer and looking at a home that has been bought by an “investor”, there is a 90 day “seasoning” period before you can purchase that home.  Most agents should note that in their listing, but sometimes it’s missed.

Still and all, it’s a good time to buy if you can.  I am always hopeful, but feel that these are truly uncharted waters and we still don’t know what lies over the horizon.