In the latest Bizjournals.com was a article about the Phoenix market. They said Home Price Index show home values rose in the Phoenix area in November of 2009 while the rest of home values around the country had fallen.
According to ASU’s Professor Karl Guntermann, the Fred E. Taylor Professor of Real Estate, who had this to say. “We saw a market turnaround in 2009 as investors and first-time home buyers were drawn to the housing market to take advantage of deeply lowered prices. However, uncertainty about the timing of recovery in the local economy coupled with new foreclosures makes it difficult to predict the trend of house prices in 2010 with much confidence.”
It goes on to say the average value of a Phoenix-area home in November was just under $112,000. Where I believe at the height of the market was at one time $242,000. That was 1.1 percent higher than October, but still down 14.2 percent from November 2008.
Only five of the 20 largest U.S. markets saw price increases in November versus October, and Phoenix’s 1.1 percent jump was the largest. Which could indicate some stabilation in the Phoenix market.
While Phoenix-area home values may now be recovering, it also was among markets hardest hit in the housing crash.
In both S&P/Case-Shiller’s 10-city and 20-city composites, home values declined 0.2 percent from October to November of last year. On an annual basis, the 10-city composite (largest 10 cities in the U.S.) declined 4.5 percent, and the 20-city composite declined 5.3 percent.
According to S&P/Case-Shiller, November marked 10 months of improved readings in the annual statistics. It’s the third consecutive month these statistics have registered single-digit annual declines, after 20 consecutive months of double-digit annual declines.
Charlotte, N.C., Las Vegas, Seattle and Tampa, Fla., all reached new lows in November. In Las Vegas, prices have declined for 39 consecutive months, and those prices are down almost 25 percent from November of 2008 to November of 2009.
In terms of a price recovery, major Western cities appear to be faring better than other areas of the country. Phoenix, Los Angeles, San Diego and San Francisco have seen prices increase for at least six consecutive months.
I think it is a good time to start investing in the Phoenix market. One should still be cautious of pockets that are still going to decline. I would stick to the Metro Phoenix area for now
You can read the full article here http://phoenix.bizjournals.com/phoenix/stories/2010/01/25/daily22.html
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