Phoenix Real Estate Market Showing Signs of Recovery

The smallest decline in valley home prices in over a year happened last month - fell from $127,000 to $125,000. Sales last month nearly doubled over April 2008. Home prices are showing signs of levelling off. These indicators could be that the local housing market has hit bottom.

Existing home sales have been climbing steadily since fall. In the time we are in now sales and median prices tend to increase as buyers move to lock in a purchase before the start of school and holidays, according to Jay Butler, director of realty studies at ASU. Some improvement would not be unexpected.

Foreclosures were less in March and April, more indicators that the market may be showing signs of improvement. The number of homes on the market that are foreclosed property is also shrinking, which helps prices.

More short sales vs. foreclosed homes on the market will help slow foreclosures. And owners are also starting to realize that lenders may work with them, i.e. loan modifications.