PHOENIX HOUSING MARKET UPDATE

While the number of closings has been creeping up

over the last several months, we should not get too excited just yet.  We still have a long way to go.  While the foreclosures tend to dominate the market, we still need to pull in traditional buyers to get the market up out of the hole.  We are still seeing investors purchasing the really low end properties.  Hopefully, they will repair them and hang on to them for awhile while the market stabilizes.  The only way we’ll see an increase in value is when the demand is higher than the inventory.

I’m not an advocate of runaway price increases…..that is what contributed to putting up in this mess.  We need to see a gradual increase in prices as buyers gain confidence in the marketplace once again.  Let’s see what the next report brings.