Phoenix Real Estate | Watching Prices Cool in the Desert Heat
Author: michael russell
Purchasing real estate now in Phoenix might seem like a risky move. The economy is in a slump and the housing market is temperamental. But if you have the capital and can attain a strong line of credit, purchasing a Phoenix home now is probably a smart idea. That's because homes prices have fallen to their lowest rates in year, and sellers are eager to get stagnant properties off their hands.
A new Arizona State University study shows home prices may finally be bottoming out.
The study shows the record sales decline of the past 3 years is finally revealing a slight upturn.
Real Estate Professor Karl Guntermann said this could be a small light at the end of the tunnel.
“This may be the long awaited signal that the housing market may be beginning to change course.”
The ASU Repeat Sales Index measures changes in average Phoenix-area home prices from year to year.
While there was still a decrease in March, it was a smaller decrease than in months past, giving homeowners, buyers and sellers a reason to hope.
In January, home prices declined by 35 percent. Preliminary numbers show home prices will drop 37 percent in February and then 36 percent in March.
That 1 percent slackening in March may not be much, but if the data holds up then it would be the first time in 25 months home price declines would be at a slower rate rather than at a faster rate.
“Another positive here is that home affordability has increased in the Phoenix area,” says Guntermann. “It is now possible to buy houses at 1999 prices. Prices at these levels are a major factor in the recent increase in selling activity in the housing market.”
That affordability is another reason to believe this trend will continue and home prices will begin to stabilize.
Guntermann said this slower rate of decline is the first step that needs to happen before the market can get back to zero, and prices can remain flat for a period of time.
When will there be a total market turn around? Guntermann said that is still too far in the future to predict.
So there you have it, the Phoenix real estate market is struggling. But if you have the capital and a strong line of credit, now is the time to act on the investment.
Michael Russell writes about a variety of subjects. This article discusses Phoenix real estate. For more information about Phoenix real estate, visit the Real Estate Book.
A new Arizona State University study shows home prices may finally be bottoming out.
The study shows the record sales decline of the past 3 years is finally revealing a slight upturn.
Real Estate Professor Karl Guntermann said this could be a small light at the end of the tunnel.
“This may be the long awaited signal that the housing market may be beginning to change course.”
The ASU Repeat Sales Index measures changes in average Phoenix-area home prices from year to year.
While there was still a decrease in March, it was a smaller decrease than in months past, giving homeowners, buyers and sellers a reason to hope.
In January, home prices declined by 35 percent. Preliminary numbers show home prices will drop 37 percent in February and then 36 percent in March.
That 1 percent slackening in March may not be much, but if the data holds up then it would be the first time in 25 months home price declines would be at a slower rate rather than at a faster rate.
“Another positive here is that home affordability has increased in the Phoenix area,” says Guntermann. “It is now possible to buy houses at 1999 prices. Prices at these levels are a major factor in the recent increase in selling activity in the housing market.”
That affordability is another reason to believe this trend will continue and home prices will begin to stabilize.
Guntermann said this slower rate of decline is the first step that needs to happen before the market can get back to zero, and prices can remain flat for a period of time.
When will there be a total market turn around? Guntermann said that is still too far in the future to predict.
So there you have it, the Phoenix real estate market is struggling. But if you have the capital and a strong line of credit, now is the time to act on the investment.
Michael Russell writes about a variety of subjects. This article discusses Phoenix real estate. For more information about Phoenix real estate, visit the Real Estate Book.
Article Source: http://www.a1articles.com/article_892063_33.html