Can Phoenix climb out of the Real Estate bust as fast as it got in it?

Can Phoenix climb out of the Real Estate bust as fast as it got in? Some very strong numbers are coming out of the Phoenix Real Estate market indicating that we are in a strong recovery. New home construction numbers continue to dip as reflected in the National Housing report. However the resale market is getting stronger by the month in Phoenix. Here is some eye catching numbers.

Active listings are down 11% from last month and down 27% from a year ago. Pending sales are up 4% from last month and up 48% from last year. Sales are up 14% from April and up 42% from last may. What does this mean? Inventory is shrinking and activity is increasing, dramatically.

Here is something alarming if you are an investor. The average price per square foot is rising. The Price per square foot last quarter was $174.25, last month $177.80 and as of May 17th. $181.22. What does this mean? Although pricing is moving up home values are still historically low in the Metro Phoenix area.


There is no reason to believe that Phoenix can’t recover quickly. Arizona has a whole is nationally ranked in the top 3 in growth rate. http://www.census.gov/Press-Release/www/releases/archives/population/011671.html Phoenix also ranks in the top 5 for Business relocation. http://www.entrepreneur.com/slideshow/164656.html
Housing affordability, climate, as well as cost of living make the Metro Phoenix area one of the most desirable places to live among the nations larger cities. This might be several reasons why the Phoenix housing market is showing signs of recovery.

The driving force in the activity in the Phoenix Housing market is first time home buyers and investors. Its well read what the Government has done to stimulate the first time home buyer market with tax credits and other incentives. Many investors are entering the Phoenix housing market to take advantage of early pricing and ample supply.

Numbers are only numbers. We still have too much inventory. New home sales are still way down. Construction permits are at all time lows and foreclosures are increasing and still coming. Maybe the Phoenix real estate market is a little like an artichoke, on the surface there is thick, course, spiny leaves but underneath is a soft heart that just might have a beat.


Happy Investing
Chris Bianco
Valleywide Foreclosures