Valley Housing Market Outlook Positive

March showed some very exciting and positive trends in the Phoenix real estate markets. Sales figures reached levels we have not seen since the year 2005. Prices in some areas showed a levelling off, or, no more downward movement. Many areas in the outskirts of town are leading a possible housing rebound. Homes priced at $150,000 and under are receiving the most showing activity, and are receiving multiple offers.

Last month 7,550 homes sold, up 70% from a year earlier. There are approximately 11,500 pending sales, 90% of which will become final.

About 2/3 of all sales are foreclosure properties being resold to investors and first-time buyers, among other groups. Based on the available inventory available, these buyers are really taking alot of it off the market, decreasing supply. Foreclosures are taking half as long to sell today as they did last fall, 117 days vs. 227.

The number of foreclosure homes on the market continues to fall, while the number of preforeclosures climbs. Over 10,000 default notices were issued in March. Other options are becoming available for these owners, such as loan modifications and short sales, where many of them may not end up going back to the lenders.

If sales continue to trend upward in April and May, there's a good chance prices in the most affordable areas could go up in June.

People are beginning to perceive we are at the bottom of the market, and April will be a key month for the market.