Analysts have given us all sorts of predictions on the housing market but if there is one thing that appears to be a common thread it is that the "double dip" will occur sometime in the middle of 2012. This article explains that although Bank of America Merril Lynch startegists see improving values in the short term, they expect that prices in the 20 major metropolitan areas will bottom out in the seond quarter of 2012.
I will not attempt to project my estimates on a national level, but in the Greater Phoenix area (Maricopa Arizona in particular) pricing will continue to be impacted by distressed home sales, both short sales and foreclosures. A review of the inventory currently being held by lenders along with the ever growing list of 30,60,90 day lates, seem to suggest that buyers will not be able to keep pace with the the flow of homes onto the market until at least mid - 2012 if not a little longer.
Obviuosly there are a number of "wild cards" in play: how will the lenders deal with the release of their backlogged inventory; are investors ready to jump in; will seasonal home buyer activity remain strong; the value of the Canadian dollar; and, of course the economy in general.
Regardless of who or what you believe, there does appear to be a light at the end of the tunnel.
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