Housing Finally Rebounds

Today’s Wall Street Journal features a story about how Phoenix, AZ housing is turning around, and for-sale inventories are falling.  This is after being one of the worst markets for foreclosures and short-sales in the country.  Why are things turning around?

1.      After falling 55% in price, housing is now a good value (or a true bargain)

2.      Inventories are finally falling since new construction has been slow or non existent

3.      Consumer mood is improving, especially when a potential buyer sees an opportunity to sell their home (at a low price) and buy a better home (at a low price).  This move-up market was stagnant in the past few years, since selling existing homes was a sticker-shock event (or didn’t happen at all).

4.      Life moves on, in spite of recessions, children get older and closer to leaving the nest – if parents ever want a bigger, better home for the last few years with their teen children they have to make the move now.  

Everyone has a story to tell about their primary home’s current market price, or their vacation home being stuck in the no-sale zone.  But, in the past few months, my friends in real estate tell me the phones are “ringing off the hook”.  Buyers are coming back into the market, and new stories will be told.  In fact, they already are.  Two of my family members have sold properties in the past 2 months, that had been on the market for years. I predict we will hear more and more stories about how “X finally sold their home”.  “Y got a bit more for their condo than they expected”.  “Z turned down a low offer, since they think more buyers are in the market”. 

If you would like to join this discussion or tell your own housing sale story – just post a comment.  All my readers would love to hear real stories, not stories from the Wall Street Journal.