Phoenix housing market could rise in 2011

Arizona State University Professor Karl Guntermann predicts that the Phoenix-area housing market will improve in 2011 even though the most recent numbers in the ASU-Repeat Sales Index register more price declines. “Given the pattern that is emerging, it is likely declines will continue for at least the next several months. However, with the economy gradually recovering, employment improving and the foreclosure problem apparently past its peak, odds are good 2011 will be a transition year in the Phoenix-area housing market,” Guntermann said. Still, the repeat sales index estimates that there was an 8 percent drop in prices between December 2009 and December 2010. Cumulatively, price drops have been staggering across the Valley since the 2006 price peak. In Scottsdale and Paradise Valley home prices have dropped about 40 percent since that time. In Avondale that number jumps to 65 percent.

Click here to view this article from its source.