The housing market in the valley is picking up and is expected to improve through the end of the year. So far in 2009; 7,200 new home lots that are ready for construction in the metropolitan Phoenix area having already sold. Housing market experts expect that the total number of housing permits in the valley will be around 8,800 by the end of 2009. Those numbers are higher than the ones predicted in the first part of the year. However, the 8,800 valley home building permits expected to be sold at the end of 2009 is still down 85% form where the market was at during its peak in 2005.
Out of the 7,200 lots that have already been bought throughout the valley, over 40% of those lots have been purchased by home builders that do not expect to hold the lots for long. This could be an indication that home builders in the valley are climbing out of the housing markets recession.
Some market experts expect almost 25% of the current new home developments in the metropolitan Phoenix area to sell out in the next half of year. Mainly due to tax credits and home prices falling 15% in the last year.
November of 2009 saw the second best home sale figures for that month’s sales history. These figures are mostly likely due to the federal tax credit for first time home buyers. With the tax credit now available for existing home buyers, we might see a record number of sales for December.
Foreclosure numbers and pre-foreclosure numbers dropped significantly in the valley during the month of November. This could be in part because of pressure placed on lenders by the federal government to help keep people in their homes through loan modifications. According to information market, foreclosure numbers dropped to 3,808 in the valley during November, which is down 21% from October.
All signs are pointing to an improving housing market in the valley. Numbers for the month of December will definitely be able to tell us more of what we could expect for the beginning of next year.
This is definitely a good sign of improvement in the real estate scenario. the valley area has shown considerable growth even during tough times but what we all hope is that this trend picks up and spreads nation wide.
lets hope for the best.
That’s great to hear. I might be one of the contributors soon enough. I’ve been looking at lots for sale in Phoenix, but have ended up falling in love with a community in North Scottsdale called Sereno Canyon. The location wasn’t my first choice, but the views and peacefulness alone might just be worth it.
@ Katie – Thanks for stopping by! Do you work for Sereno Canyon?
@ Kyle – No I don’t, but I discovered the community while hiking in the McDowell Mountains and have just fell in love. Thanks!
@Katie – That’s great Well thanks again for stopping by and feel free to check out our main blog too.