Phoenix Home Sales Decline — A Model for Durham?
While reading various blogs, I came across this post on TheStreet.com about August home sales in Phoenix. It’s certainly worth a read. Not for the numbers themselves — the Phoenix market has been one of the hardest hit during the collapse of the housing industry, while Durham has been relatively untouched, so there is no direct comparison. What might be similar, however, is the effect that a dwindling supply of foreclosed properties has on the number of sales and the price of homes. In Phoenix, a declining number of foreclosures has led to a drop in the number of sales, but a stiffening of home prices [although, to be fair, all of those effects are relatively small at the moment].
Might this be a indicator of how other markets will react as the foreclosure crisis eases? It makes sense — a declining number of “super inexpensive” homes leads to a drop in sales figures and an increased average price. Again, Phoenix isn’t Durham by a long stretch, but this might be something to look out for over the next few months.
Tags: general news
