What's Really Happening in Real Estate

Welcome to another "Ground Zero" report on Real Estate in Phoenix Az. I've been getting alot of questions about where we are heading in the coming year. While I don't have a crystal ball, here is what I see coming, in my opinion.

We finished up 2009 with increased sales. Total Inventory of homes was cut by 1/3 to 1/2, depending on the report. While Foreclosures still dominated, and filled the market, buyer demand ate up the extra inventory, and kept prices stable. In fact, from Sept 09 through Nov 09, prices if Real Estate in Phoenix Az rose 3.5%.

The year 2010 is shaping up to be very similar. There are alot of foreclosures still due to come on the market, but I think banks have learned that flooding the market with all of them, at once, is bad for the market, and for them. It is my opinion they will continue to release them at a slower, steadier pace.

Another thing that banks have learned about Real Estate in Phoenix AZ is that fixed up homes sell better, and for more, than trashed ones. I see a trend developing where banks paint and carpet foreclosed homes, and make some repairs as needed, prior to selling them. This way they can sell for more, recouping their costs and then some. Not all banks are doing this, but some are.

And, as I said in earlier blog, 2010 will be a year of short sales. In fact, I had my first situation this past week where a bank came to client of mine, and THEY SUGGESTED A SHORT SALE IN LIEU OF A LOAN MODIFICATION!That has never happened in my experience before, but is a sign of banks being more proactive this year in the Phoenix AZ Real Estate Market, to prevent foreclosures.

Sales were a bit slower in January but February has been strong, and indicators are that they will continue to be for the coming year. Forecasters predict a 5% rise in Metro Phoenix AZ Real Estate prices in 2010,and that, along with predicted higher mortgage interest rates, suggests it is a good time to buy and invest.