Housing prices have dropped dramatically in the Phoenix Metro area over the past year. In many areas, that past three months have been brutal.
Click for larger view
I read as much as I can – I think it’s important to hear what the experts have to say. One of the people, I listen to is John Burns, a executive-level real estate consultant. Lately, I haven’t been liking what he’s been saying.
For instance, Phoenix Metro has earned a grade a “D” in the rating system that John and his team have devised. Considering that the highest grade out in the U.S. right now is a “C”, I suppose we shouldn’t feel so bad.
In early January, John sent out an email “Affordability Is No Longer A Problem”, where he said:
Falling home prices and low mortgage rates have created an environment where housing affordability is now better than average in most areas. All of the areas shown in blue on this map have better than average affordability, based on the historical ratio of housing costs / income since 1981. The Pacific Northwest, the Northeast and a few other areas still have affordability problems, but that is changing quickly as prices are tumbling in these areas as well.
On the map, he showed the Phoenix area, being at the top of the class for affordability. On his web site you can see that Phoenix is one of the most affordable housing markets in the country today.
A couple days later, John posted a webinar, a white paper, and a PowerPoint presentation entitled ” Unlocking the Housing Market Recovery” , which outlines a proposed solution for the current state of the real estate market. Interesting information that you may want to look at. Being educated in this market about what the problem is, how is was created, and what we might do about are important.
You can subscribe to John’s email reports also. I recommend it, because all of the charts and informaiton in the emails don’t get posted to his web site.
Focusing on solutions is what it’s going to take to get us to a more balanced real estate market. One where buyers and sellers are on more equal ground. A market that we’ve not seen for quite some time. Will be nice, won’t it?
{ 0 comments… add one now }