Phoenix Real Estate Blog: A Housing “Mini-boom”

On Tuesday I blogged about the fact that home prices rose in Phoenix for the third straight month since August 2006. But there's more good news: the number of home sales was up, too -- across the nation, actually -- leading one real estate expert to dub this a real estate "mini-boom." 

"There's a mini-boom going on in the housing market," said Thomas Popik, who conducts a monthly survey of real estate agents for Campbell Communications, a research firm.

Nationally, sales rose 9.4% in September - a higher increase than had been expected, according to the National Association of Realtors.  Locally, sales were incredibly strong compared to last year - the number of homes sold in Phoenix was up 16% to 8,922.  And the number of homes sold in Scottsdale was up 16.1% to 1,851.

The "mini-boom" is fueled in part by the soon-to-expire First-time Homebuyer's Tax Credit, as well as a still-increasing number of foreclosures. 

According to the Arizona Republic, "The foreclosure rate has accelerated in more centrally located, often pricier neighborhoods while slowing down a bit in newer, more remote communities where the foreclosure floodgate burst in late 2007."

What does it mean for you?

If you're a buyer, the rapidly rising number of home sales means that we're moving ever closer to the point where demand and supply are once again in balance, and then to the point where demand outstrips supply and prices rise. 

At the same time, with a still-high number of foreclosures on the market, there are great deals to be had, even in the centrally-located, established neighborhoods of Phoenix and Scottsdale.  And, if you move fast, the homebuyer's tax credit is effectively an $8,000 rebate on the purchase of a home.

If you're a seller, the real estate "mini-boom" will afford you the opportunity to sell your home for a higher price, in less time.  If Congress extends the homebuyer's tax credit, demand will continue to ramp up, and with the recession now "officially" over, consumers will likely soon regain confidence and loosen the purse strings.

What do you think?  What's your prognosis for the "mini-booming" real estate market?  Are you planning to buy or sell soon?  Click on the "comments" link below and join the conversation!

Want to know more?  Click here to watch my "October Market Update" video.