News Article From: 04-17-2006
The first article, Housing blip a speed bump, not a slump, from the Phoenix Business Journal, reports that the region's housing market has gone from red hot to lukewarm in just a few quarters, but most housing experts see the current slowdown as a market correction and not a more serious slump. "The current slowdown in the market is a short-term imbalance caused by excessive investor activity, rapid price run-ups in a short period of time and, in some cases, poor market analysis by builders that, collectively, have led to an oversupply of housing in certain price ranges, in certain areas," said Rebecca Burnham, a real estate attorney with the law firm Greenberg Traurig. In December 2004, Phoenix-area resale homes averaged just under eight days on the market and in January 2005, that number dipped to six days. A month later it increased to 35 days, and in January 2006, it rose to 49 days. In February 2006 it rose again to 55 days. Housing industry experts hope the Valley housing markets' slowing is a market correction and that the region can be propelled by continued population and job gains. As the "investor" homes that are now on the market sell, the market should get back to inventory levels that are more normal and sustainable.