Actual honest feedback from a Phoenix realtor on a market that is imploding:
DEC 1: IS THE PARTY OVER?? Which market prediction turned out to be reality? There is currently a new market, one much different from the record-setting real estate boom of late.
As of TODAY, it is a neutral market: not a seller's market and not a true buyer's market. It is a transitional market. Some don't know what to make of it and are sitting this month out.
It is slow and some are worried. The investor (speculator) sell-off has begun in many parts of the Valley so naturally, inventory is up causing a slowing.
Some investors who got caught in newer-construction, investor-saturated areas, are feeling their profit slide backwards due to seller competition amongst each other.
NOV. 3: RESALE INVENTORY DOUBLES IN 4 MONTHS - WILL LIKELY TRIPLE BY END OF '05: The amount of resale homes listed in the Greater Phoenix area has been increasing at an average of 266 listings each week for the last 24 weeks. Back in April, which seems soooo long ago in this market, the Arizona Regional Multiple Listing Service held 6,453 available resale homes. As of this Monday, October 3, that number has risen to 15,727. Naturally, these numbers seem staggering and would cause alarm to many who have been waiting for the proverbial and much feared "bubble".
December 06, 2005
Phoenix, Arizona: The investor (speculator) sell-off has begun in many parts of the Valley so naturally, inventory is up causing a slowing
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4 comments:
41cadillac said:
Saw the Nightly Business Report Dec. 5th.
He does not point out the colossal
"ATM Housing Spending".
What is the real economy going to do?
Extremely positive 2006 projection by MARK ZANDI, CHIEF ECONOMIST, MOODY`S ECONOMY.COM:
Mark says:
"The annual income of the average American household will rise by some $4,000 and their net worth by $35,000, good by any standard." ......
And he also says:
"There are risks. Energy prices could spike higher and interest rates will continue to move up, increasing pressure on overdone housing markets and over-leveraged households."..
He goes on:
...."The economy will surely face some hurdles in the coming year, but should create just as many jobs and an even lower unemployment rate. Incomes and net worth are on track to post solid gains. Powering growth are flush businesses. Aside from the airlines and auto makers, profit margins have never been wider.".....
I felt this commentary by Mark was outrages and off the mark.
41cadillac
From Energy Pulse a couple of weeks ago...
Unusual Signals from the Natural Gas Markets
11.30.05 Harry Chernoff, Principal, Pathfinder Capital Advisors, LLC
Harry said:
"In the bigger picture, nothing that took place this summer in gas production and demand and nothing relating to the storage or pipeline situation changes the bleak long-term outlook for North American gas supply against the relentless increases in demand."
I say:
Inflation is the point. Natural Fuel prices, gasoline prices, and the elephant in the living room house prices.
It looks like Phoenix and South Florida are going to be the first major casualties of this ponzi scheme, with San Diego and Las Vegas not far behind. Ouch!
Tracking Phoenix/Maricopa & Pinal Counties
Population 2005: 3.8 million
Listing per population ratio 7/20: 1:353
Listing per population ratio 11/10: 1:150
7/20: 10,748
7/30: 11,656
8/10: 13,099
8/20: 14,321
8/30: 15,042
9/10: 16,716
9/20: 17,516
9/30: 18,799
10/10: 20,073
10/20: 21,806
10/30: 23,770
11/10: 25,387
11/20: 26,616
11/30: 26,811
12/3: 27,170
12/5: 27,352
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