The Phoenix Housing Market: Time to Dive Back In

Much has been said about the Phoenix housing market over the last year and a half. With 2009 squarely behind us, most lenders, subcontractors, new home builders, and many others are feeling much better having come out of a situation which easily could have become a far greater debacle.

A quick glance back at recent history clearly shows that new home permits in December 2009 were up from November as well as the same month the year prior. With builders pushing for year-end closing and revenue, newly-positioned product lines and incentives are sure to help the market for both builders and consumers in the weeks, months, and years to come.

Another reassuring figure shows that resale housing finished 2009 far stronger than anticipated. It is likely that new listings will again surge as we approach the spring season as a result of clear indications of price stabilization.

An extension to the first time buyer tax credit will surely stimulate and increase in purchases plus, a program has been introduced for second home buyers. While concerns remain regarding employment will still factor in the short-term, an upswing is becoming evident.
That being said, for the first time in a long time, there is a sense of optimism among industry players, including customers, who are now proceeding with the anticipation of full recovery over the next several years. One can expect to see builders, both public and private, continue to reposition for market share as they try to anticipate consumer needs and trends moving forward.

One thing that was gained from the recent market turmoil was the shared recognition that the devil is, was, and always will be in the details. This has fostered a commitment on all levels to do things the right way. Lenders are more conscientious about ensuring that a customer can qualify and home buyers are more prudent about the choices they are making, recognizing the importance of stepping into a home that they can truly afford.

The best part, homes that were unreachable because of inflated prices are now offered at more realistic ones for shoppers. Sometimes a business or even an entire economy must take a step back to take two forward. With regard to housing, a staple of human existence, there will always be a demand. This simple fact assures us that the problem will invariably correct itself and is already showing signs that such perception is spot-on.
The time is soon coming that the downward spiral of this market becomes a dark, albeit distant memory. Such crises often help to shape positive behaviors and while we may not see an incredible boom as we did most recently, it is likely that we may expect a slow, gradual increase in home values.

Perhaps it will be some time (and possibly never again) before one may enter the real estate market with the hopes of turning properties with substantial and immediate ‘get rich quick scheme’ types of profits. In its stead, we should likely see a fair and well-balanced market that provides that which was always intended … homes that provide affordable living, some security, and long-term stability for its owners.

This is a no-fear time to go home shopping. There are plenty of choices, prices have come down tremendously from their peak a few years back, and a lender approval these days should give more than enough confidence that what you are approved for is perfectly aligned with what you can afford.

Go buy what you like that is in your range. In both the immediate and in the end, you will be glad you did.