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News Article From: 09-18-2006
The first article, Valley's falling home prices are 'necessary correction', from the Arizona Republic, reports that Metro Phoenix's housing market is "somewhat" vulnerable to a real estate bubble, but that's not necessarily a bad thing, because if home prices dip a little, affordability will climb and the area's growth has a better chance of continuing. People and companies move to Phoenix because the area has relatively affordable housing for the West. That was the message from Joel Kotin, a senior fellow at the New American Foundation at a real estate seminar given last week called, "Evolution": The Valley of the Sun, a Look at Future Growth, sponsored by the Urban Land Institute. "Lower home prices are a necessary correction for Phoenix," Kotin said. Many in the audience and on the panel discussion agreed with Kotkin. Grady Gammage, a real estate attorney, said for years people have debated what's behind metro Phoenix's growth. Cheap housing or jobs? He thinks cheap housing.
The second article, W. Valley home resales drop, from the Arizona Republic, reports that West Valley resales were lower in August 2006 compared with August 2005, according to the Arizona Real Estate Center at ASU. But local Realtors aren't sounding the alarm yet. "Everybody got used to last year, when they were tripling what they were making on their house, and now they are only doubling it," said Judy Bowes, a Glendale Realtor. "It's still is not too bad, as far as I'm concerned." Sales were down about 50% Valleywide in August 2006 compared with August 2005, and while some areas showed price declines, others had price increases in the median resale price of a home. "I think it's pretty much the same all over the Valley. I don't think there is much of a difference between the East and West Valley," Bowes added.
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