Why Housing Hasn't Hit the Skids?
So... this is the much-feared "Housing Bust"? Bust Lite is more like it.
Existing-home prices are high as they were a year ago, (except in Surprise & Queen Creek to out laying area of the valley) while sales have receded only to the 2003 levels. (Which were still pretty good time for the Phoenix Market!)
The only extreme decline is in construction: where the builders got greedy, and now are trying to get rid of the houses they have already built before they build any more. The over hang of unsold home (Inventory) could be back to normal by mid year.
Credit goes, at least in part to the low interest rates. Fixed-rate 30-year mortgages are still at a modest 6.2% and one of our clients lock in a 5.75% just yeasterday. That, combined with income growth and the normal influx of new valley residents (100,000 to 150,000 people each year) has keep most area of the valley housing market still affordable.
The surprise of low interest rates are keeping a floor under housing. the 30 year mortgage rates are no higher than june, 2004, even though the fed has pushed up the Federal Funds rate on short term rates to 4.25 percent.
SEE YOU IN ARIZONA