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Phoenix real estate update: less homes on the local market

By
Real Estate Agent with Sterling Fine Properties AZDRE# BR553129000

The Arizona Republic reported today that "the number of homes for sale in metro Phoenix is declining, a sign that the housing market could start to recover this year."

The full article can be found here but the gist is this:

The number of Phoenix homes for sale (as reported by the Arizona Regional Multiple Listing Service) dropped in December by almost 3,000 to 42,500. Why is this significant? Because real estate is much like many business equations in that the health of the market is based on supply and demand. With an over supply of homes (which we have experienced because of the many short sales and foreclosures on the market), home values decrease. Period. In order to continue on the road to stabilization in the real estate market and for home prices to increase, the balance between supply and demand needs to be more even.

There is still a concern that there will be many short sale and foreclosure sales this year, which will then influence home prices and other elements of the market. It is true that the numbers predict many foreclosures to be cycled through the market. In fact, "lender-owned home sales climbed to 48 percent of all home sales in December." While there is true that there is a large supply of bank-owned properties, cycling them through and moving past the dip will only be better for the real estate market in the long-term. And due to the lower supply of homes on the market and the influx of real estate investors in the Phoenix area, the bank-owned properties are selling quickly. Therefore, this really is just a temporary influencer in the market.

I've said it before and I'll say it again, the Phoenix market continues to be a good long-term investment. While mortgage rates are low and home prices competitive, now is a great time to buy. And with the overall health of the Phoenix economy good, the local real estate market continues to look promising for investors and single-home residents alike. If you are considering buying or selling a Phoenix property (whether it be a short sale, foreclosure, or other), contact me. I'm here to help.

Read more about "Phoenix real estate update: less homes on the local market," at MyPhoenixmls.com

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I specialize in selling Phoenix real estate -- Scottsdale homes and Phoenix homes, including Phoenix short sales and bank owned homes. To see my listings and learn more, visit www.MyPhoenixMLS.com.

MyPhoenixMLS Real Estate

 

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