A post from my blog from early August still seems relevant. PHOENIX MARKET TURNING AROUND. IS IT TIME TO BUY?

Average home prices have gone up 4 months in a row (April, May, June, July) in the Phoenix real estate market based on sold price per square foot. The increase in distressed sales in Phoenix and its metropolitan area have been driving up the average sales price of homes.

I believe this is in part due to the drop in home values over these past 2 years. The median price of a home in Phoenix metropolitan area has dropped so low, that it has sparked interest in especially investors and first time home buyers. First time homebuyers seem to be coming out of the woodwork to buy homes that 2 years ago were unattainable for them. In my opinion, we have a back log of first time homebuyers whom for several years starting mid to end of 2004 up to late 2006 early 2007, were simply priced out of the market and it took 2 more years for a total of approximately 5 years where these first time buyers had to sit on the sidelines and rent. Although the general consensus is that we will see more foreclosures over the next 2 years, I believe there are more than enough buyers out there to take up the slack especially with the first time homebuyer tax credits set to expire this year, (That remains to be seen) that continues to bring more buyers in. I presume that the government will be extending that program when they find out how successful it has been to stimulate the real estate market.

Is now the time to buy? In my opinion, the answer is yes. Statistically, the market is flattening out and we are seeing homes sold in days instead of months, much like they were in late 2004. Although the list prices are much lower than they were at the peak, they are still and will continue to sell, in most cases slightly above the asking price which has changed in just the last few months. So if you want to get in at the right time, I think give or take a few percent, now is the optimum time to buy.

Check out this post we found dated August 4, 2009 at www.woodridgebuilders.wordpress.com

Distressed property sales accounted for more than half of all housing sales during the month of July 2009. Distressed sales include bank owned/foreclosures or short sales, accounting for 69% of all residential sales in Maricopa County or the Phoenix metropolitan area. These distressed sales are a major impact on the Phoenix area market. July also saw a nearly 11% decrease in the number of pending sales, although this is still the 5th highest month of sales in the 36-month period from July 2006 until the present. An unusual characteristic of this market is the list price for active listings has become the base price when making an offer on a home, primarily in house priced below $200,000. The list price used to be considered a top, as offers came in less than the asking price, in today's market that has changed.

Although the Phoenix housing market saw a decrease in pending sales, the good news is associated with the average sales price. July saw an average sales price increase of over 2%, the fourth month in a row for increases in the average sales price. Though this doesn't mean the Phoenix real estate market has completely turned-around, it is nice to see the average sales price is the highest it has been since January 2009.

While some areas of the country are still declining in home prices and housing starts, the Phoenix area may have reached a turning point. New home construction jumped 42.5% reported for April 2009. Consumer sentiment is also up according to the National Association of Realtors, and home prices have actually increased in some parts of the country, including the Phoenix metro area.

In summary, to answer is now the time to buy? I say YES!

Thank you for reading,

Type at you later.

Ken Cuellar