RL Brown Report offers some Good News for Phoenix Real Estate Market

RL Brown , the premier source for Phoenix area housing data, incuding the cities of

Phoenix, Scottsdale, Tempe, Fountain Hills, Peoria, Glendale, Paradise Valley, and communities of Desert Ridge, DC Ranch, Troon, Grayhawk

and its most recent report on the the Phoenix housing market showed signs that we may be approaching a bottom.

Although inventory levels have remained high and stayed at the same level,

Sales have picked up for several reasons.

1) Lower home prices - yes, prices are going down, especially here in Arizona and metro Phoenix Scottsdale, where we saw on of the biggest national drops. Inventories remain high. However, lower prices are creating buying opportunities which we haven't seen in several years

2) Easing of interest rates - although, rates have trended up in the last few weeks, they still remain low and lower interest rates allow one to buy the same home with a more affordable monthly payment. Although, credit is a little more difficult to come by. Stricter lending terms, larger down payment requirements make the likelihood of future foreclosures less and a prolonged housing recession less likely.

3) Buyer confidence seens to be returning - Buyers dictate pricing. Period! Lower home prices make buyers more eager to dip a toe in what has been a scary real estate pool. Buying can have a positive effect on consumer and home buyer sentiment pushing this housing negativity further back in our rear view mirror.

Does that mean we have hit a bottom?

Is the end in sight?

Is it time to buy??

Inventory levels would indicate that we have some time to go.

However, The Federal Reserve Chariman Ben Bernanke appears set to address inflation and will likely leave rates alone or lower interest rates further to stimulate the economy.

Federal lawmakers are committed to work with Government backed lending institutions (Fannie Mae , Freddie Mac ) to stimulate the Real Estate Market and banks are working with consumers to help keep them in their homes.

Don't let the naysayers fool you. If it's not the time, to buy, there is plenty to indicate and to suggest we are getting close.

 

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Copyright © James Wexler, "Report offers some Good News for Phoenix Real Estate Market *