DOWNSHIFT IN FORECLOSED PROPERTIES IN PHOENIX

From July to August, Phoenix saw a decline

in the number of foreclosed properties.  This according to ASU’s realty studies Director, Jay Butler.  The number of sales are up from the same time last year as well.  The foreclosures are driving the market and we will not really know if the housing market here in Phoenix is truly “recovered” until we see the investors slow down in their buying.  The true measure of a healthy market is “normal sales”…..i.e., people who want to move put their homes up for sale — not people are losing their homes and banks just want some if not all of their money back.

Prices have also increased here in the Valley.  A mere 1%, but it’s an improvement.  In one year, the prices (on the average) have dropped 29%.  Hopefully, we will be able to continue to see recovery.  This will also depend on the rate of unemployment and the state of the economy.  As you know all of these factors are tied together….it’s a house of cards, so to speak.  When you remove a bottom card, the whole tower falls.

Only time will tell.  Consumer confidence needs to return and we need to stop bleeding jobs and opportunity.  This is a capitalist economy and the government needs to let us come back on our own.  By artificially propped up the economy we’re just heading in the wrong direction.