Has Real Estate Bottomed Out?

There’s no question, the numbers are turning around.  The bottom, according to this article was April 2009.  I have recently been to several builders and have called even more, and they are selling homes, no doubt about it, and with very FEW incentives.  November’s peak sales numbers no doubt were influenced heavily by the possibility of the $8,000 tax credit disappearing November 30.

The tax credit was revived and now goes through April 30, 2010 so my guess is, December sales will be a little more sluggish than November’s as it’s typically the slowest month in real estate.  Read that as BUYING OPPORTUNITY!  But come January, its my prediction that prices will hold or even rise as we head towards April 30, the end of the latest extended tax credit.

The late spring and early summer months of May, June and July are the busiest months in real estate typically, so any buying momentum will continue.  Banks and other sellers are holding prices much more firmly than a year ago.

If you are buying  a home, focus now!  If you are planning on selling, think listing in mid February so first time home buyers can take advantage of the tax credit.

Questions about the Tax Credit, Leasing an Investment Property, Buying or Selling a home?  Call me.  Philip  480-323-9866

From the Arizona Republic Today, December 9, 2009

Housing business picks up in Valley; foreclosures drop

1 comment by Catherine Reagor – Dec. 9, 2009 12:00 AM
The Arizona Republic

Land Advisors’ debut real-estate forecast event last week drew a crowd that packed an Arizona Biltmore resort ballroom.

Here are some key data and predictions from the event, “Real Estate: Evolution of an Industry.”

• The final tally for homebuilding permits in the Phoenix area this year will be about 8,800, which is down 85 percent from the peak in 2005

But the building market is picking back up as the oversupply of speculatively built homes sells.

“Homebuilders are out of their depression,” said Greg Vogel, chief executive

of Scottsdale-based Land Advisors. So far this year, 7,200 home lots ready for construction have sold in metropolitan Phoenix. About 42 percent of those lots were bought by homebuilders, and they don’t plan on holding on to them for long.

• Jim Belfiore, president of Belfiore Real Estate, said almost one-fourth of metro Phoenix’s current new-home developments will sell out in the next six months. New-home prices fell about 15 percent in most subdivisions during the past year.

• Phoenix’s housing market hit bottom in early April, said Mike Orr, principal of the Cromford Report, a real-estate research firm. Based on current price trends, the housing market could start to see positive appreciation rates by March.

Last month was the second-best November for home sales in the area’s history. Only November 2004 was better.

Meanwhile, both foreclosures and preforeclosures fell in Phoenix during November. Foreclosures dropped 21 percent from October to 3,808, according to the Information Market.

Preforeclosures dipped 9 percent, to 7,149. The number of overall pending foreclosures was almost flat last month, at 50,510.



Comments

[Will Lamkes]

I totally agree, buying properties at their slowest sales months will guarantee you big savings and even bigger investment returns! It's just like the stock market!
Will Lamkes
Toronto Apartments