I’ll call it! I believe the Phoenix real estate market bottom has become clear and for any homeowner who agreed to purchase a property in the end-March to early-May timeframe (lined up a contract during that time), you made out.
Though not represented here, through numerous Comparable Market Analyses I have done and showing activitywith buyers over the last few months, I see clear indicators that the best values were had during this time.
Why? Because the banks were pricing foreclosures very low before the onslaught of heavy buyer activity came in and snatched them all up. Now, we have more limited inventory, especially with regard to foreclosures, which is pushing home buyers to short sales (which many buyers will avoid) and normal seller transactions (which didn’t get a lot of attention until recent as they are usually priced a little higher).
Will the bottom last? It depends. Given there is a big expectation for many new foreclosures to hit the market starting next month, we may very well see a ‘W’ shape as a new dip in the market occurs in pricing. If the new inventory is substantial, there is a good likelihood of this happening. However, I believe Buyers will be smart to take advantage of it quickly if it does.
Nonetheless, as for now and barring the above, the bottom seems clear to me and like I always believed, passed by us like a quiet whisper.
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