Phoenix leads The Way Down
According to the New York Times (article by DAVID STREITFELD and JACK HEALY from 4/28/2009) Phoenix is the leader in housing price reduction since the peak.
Needless to say these are not bad news for real estate buyers. The article mentions how the low price levels are starting to reduce inventories.
As investors we hope for more news like these in the genral media. While we know that the real frenzy will only start after the “recovery” is official, it is good to get the general buyer population into a dark mood. It is also good for the sellers to read such news.
The price levels in the greater Phoenix metro have indeed reached incredible levels. Foreclosures are still contributing to the situation and builders are trying their best to compete with the incredible bank-owned deals (so far unsuccessfully).
Home Prices in Selected Cities NYTIMES.COM
Phoenix has achieved the unwelcome distinction of becoming the first major American city where home prices have fallen in half since the market peaked in the middle of the decade, according to data released Tuesday.
Though historical statistics are scant, experts said the precipitous decline probably had few if any equals in modern times.“Even during the Depression, I’m not sure prices fell this quickly,” said Karl Guntermann, a professor of real estate at Arizona State University.
