There’s no doubt that the current market conditions are slower than most of us feel comfortable with. However, while comparing stats, it’s vital to take the stats of the last 5 years, not just from last year. Last year was out of the ordinary so it’s not accurate to only compare 2006 to 2005.

Although our inventory is higher than we’d like, at least the increase in inventory has slowed which is a sign of correction. The positive outcome is that there are people who weren’t able to purchase a home last year that are now able to, such as first time home buyers.

Below are some quotes and clips from last weeks Arizona Republic articles to summarize current market conditions and give some perspective. After reading through, remember the most important fact: there are still more people moving into the Valley than moving out!

“Like most parts of the Valley, Phoenix’s housing market is returning to normal. . . .Phoenix has several areas where buyers, particularly first-timers, can find more-affordable homes.” Catherine Reagor, The Arizona Republic, Oct. 25, 2006

* “The Valley’s housing market is going through a definite and obvious correction,” said O’Campo de Castillo. “Homes are selling, but they have to be priced right. No one is paying last year’s inflated prices.”

The Valley’s price dips are a result of supply and demand. . . .Housing analysts say when the Valley’s supply of homes for sale drops below 35,000, the market will have rebounded or close to it.

The number of listings has stopped climbing by 2,000 to 3,000 a month and was almost flat in September. That shows that the biggest dips for the Valley’s housing market could be over.

“The Valley’s housing market is returning to normal. After last year’s inflated home price run-ups, that means many areas will see prices drop,” said Jay Butler, director of the Arizona Real Estate Center at Arizona State University’s Polytechnic. “Some areas of the Valley will feel the correction more than others.”

Tim Sullivan of the San Diego-based real estate consulting firm Sullivan Group said that housing markets in California and Las Vegas will rebound quicker than Phoenix because there’s not a lot of land for new building. But the Valley has something most areas don’t: strong job and population growth. Analysts say the market could rebound by mid-2007.

* Catherine Reagor and Ryan Konig, The Arizona Republic, “Huge supply of houses keeps prices down: THE VALLEY’S VOLATILE HOUSING MARKET”, Oct. 22, 2006