You may of heard the expression first in, first out. That looks like it may be true for the Phoenix Metro area real estate market. While Phoenix was at one point considered the foreclosure epicenter. The recovery is starting here faster than some of the markets that took longer to be effected.
Now real-estate economists across the country are studying an early but surprisingly broad Phoenix turnaround. The sharp drop in home prices has brought new buyers into the market. Unlike other markets where housing recoveries have been snuffed out by big overhangs of homes for sale and foreclosed properties, inventories are lean here.
“Phoenix has hit a bottom,” says Thomas Lawler, an independent housing economist who was one of the first to warn six years ago that prices in overbuilt metros were poised to fall.
Full article on WSJ.
I’m seeing evidence on the street that backs up this article. Buyers frustrated with low inventory, investors paying cash beating out first time buyers with financing and houses going into multiple bid situations in the first week on the market.