YPN Lounge: Things are Looking Up!
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Things are Looking Up!





I am happy to report that things are picking up here in the Valley of the Sun. (For those of you who are not familiar with this term — I am talking about the greater Phoenix area.)

Contrary to what I hear on the news and from what I read in the newspaper, the real estate market is getting better. When I ran the numbers I noticed that we sold more homes in May 2008 than the same time last year. To me this is a positive sign that buyers are less wary to buy now than they were last year. Also, the inventory of homes for sale has been decreasing steadily for a few months now.

While the numbers were not as high as they were during the housing boom, they are still acceptable. I believe that this should be the benchmark for how we measure home sales today. If we continue to compare current homes sales to those sold during the boom we will continue

to see that the numbers do not come close. While the numbers are down from a few years ago, they are more on par with what is normal for our industry.

Also, comparing home sales during the boom to today would be like comparing rainfall here in the Valley, where most of the time we have a pretty dry climate. It is only during the monsoons do we have large amounts of rainfall. And while there are years that it rains more, comparing a couple of really wet years to the majority of dry ones is not really a good comparison. The years where it rains more are an exception more than they are the rule.

Real Estate is very similar to the rain. Although things have been cloudy lately, it does not necessarily mean it is going to rain. And if it does rain, it may only be raining in one part of town, where in another part of town it is still dry.

But overall, in Phoenix, it looks like the sun is finally ready to come out again.

Have you been noticing any changes in your market?


Ulises Romo is a REALTOR® for PRO-formance Realty Concepts in Phoenix.

Comments

It sounds like things are starting to pick up once again in Phoenix.
Has anyone checked out NAR's latest sales forecast? NAR's chief economist predicts that U.S. existing-home sales will increase in the fourth quarter and rise 6.3 percent in 2009.

Here's a link to the article:
http://www.realtor.org/RMODaily.nsf/pages/News2008060901?OpenDocument

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