Who’d have thought?
Speculators and prospective home owners came out in droves to buy homes in the Phoenix area. M did an early check of the sales numbers, and here’s the unofficial sales for April:
Under Contract 16,779
These numbers are only preliminary- agents have several days to update their listings, so ARMLS will likely report a higher number.
Listings have dropped to a level we haven’t seen since April 2006. Sales are at a level we haven’t seen since October 2005.
I will undoubtedly be accused of being a perma-bear, but I don’t believe, even with sales at record levels [Only 14 months have been busier] that this indicates "recovery". Only the lower half the market has recovered.
Higher end properties are going to have to drop their prices significantly to adjust to this market. That will tend to put downward pressure on all prices. High speculator participation and a cooling economy are also risk factors for the market.
It’s nice to see that there are affordable homes for those who want them, but there are still risks involved when purchasing Phoenix real estate.