Phoenix Real Estate Market

If you think real estate sales are dead then check out the awesome article from Forbes regarding the Phoenix Real Estate Market!!
Reprinted courtesy of Forbes News


Michael Feder, chief executive of Radar Logic says "There's a pretty active housing market, it's simply at a lower-priced inventory, and there are now bidding wars taking place over homes in foreclosure."

In markets flush with motivated sellers, such as Phoenix and San Diego, transactions are up 10% and 90% respectively, as buyers are starting to compete for available deals.

All are bright spots in an otherwise dark economic climate. While in many cities, potential homeowners are waiting to see how low prices will fall before buying, in places with highly motivated sellers, prices have dropped far and fast enough to rekindle sales. While foreclosures continue to rise, and estimated 8.1 million more of them through 2012, financially solvent buyers are finding good deals at price points and mortgages they can afford.

"We're clearing out the bad news," says Kiva Patten, a director at Merrill Lynch specializing in housing derivatives. He says that continued price drops and uncertainty have kept many out of the marketplace but that some markets have reached a price level that's drawing in buyers. "If everyone is expecting bad news, when you get the bad news, and it's out of the way, that's good. Individual buyers start to come back into the marketplace."