Signs of upturn in Phoenix's long-suffering housing market

The Phoenix housing market is showing signs of improvement, even generating bidding wars among buyers for lower-priced homes. The area was one of the hardest hit by the foreclosure crisis. Prices had fallen 57% from their peak. Now, "We list a property and, within two or three days, we have multiple offers," says Keith Krone of Keller Williams Realty in a Phoenix suburb. While frustrating for buyers attempting to get homes at rock-bottom prices, it's a healthy sign of healing in a market scorched by the housing bust five years ago, say local Realtors and real estate experts. The area's January home sales were up 8.1% year-over-year. Multiple offers are common on lower-end homes, investor-buyers say. And the inventory of homes for sale is now well below the 10-year average, says Michael Orr, real estate expert at Arizona State University. National data watchers have also seen improvements in Phoenix. In October and November, it was the only one of 20 major cities to see home values rise month-to-month, according to Standard & Poor's Case-Shiller home price index, which reports December results today. Phoenix "is probably the best example we have right now of a hard-hit market that's showing signs of recovery," says Zillow economist Stan Humphries.

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