Contrary to a lot of opinion most experts agree that Phoenix area home prices will remain flat into next year. According to a recent report issued by Arizona State University the Phoenix residential real estate market has taken three steps forward and one step back since March. As I have written on a number of occasions in this Phoenix real estate blog over the last few months I believe this market will remain fairly flat for at least the next 12 months. Does that mean we will have some down months?….YES. Does that mean when we have some down months we run around screaming “the sky is falling”…. NO. But that is the way most of the media reports it, I just shake my head. As ASU reports we saw three straight months of recovery and then in July faltered some. This is to be expected in our recovery people, we are not going to recover in a congruent, straight line up, won’t happen, never has!
The ASU Repeat Sales Index was at “0″ for July and will probably remain at “0″ for the rest of the year, this is according to professor Karl Guntermann of ASU’s W. P. Carey School of Business. The “0″ recorded for July of this year means that prices in the Phoenix area were the same price this July as they were in July of 2009. Guntermann states he thinks metro area prices will remain flat for the next twelve months. Guntermann also says “while the improvement seen over the past eighteen months isn’t likely to continue, there also is no evidence that house prices will resume a downward trend contrary to some published reports.” He also states that the Phoenix area housing market is far more stable this July than it was in July 2009. So everybody take a deep breath and calm down.
Check out the chart below of the Repeat Sales Index for the last year. If we can answer any questions or assist you in your Phoenix investment property goals please contact us above by clicking the button in the above navigational bar. Hope to hear form you soon!
MONTH MEDIAN PRICE REPEAT-SALES-INDEX
August 2009 $126,500 (-25)
September 2009 $130,000 (-23)
October 2009 $131,000 (-20)
November $135,000 (-17)
December $132,500 (-13)
January 2010 $125,000 (-9)
February 2010 $127,000 (-7)
March 2010 $132,000 (-3)
April 2010 $135,000 1
May 2010 $132,000 3
June 2010 $133,000 2
July 2010 $129,00 0
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