Currently supply is down to 21,000 active listings, compared to 43,000 four months ago and 61,000 3 years ago this is great news. Demand is still high so if the demand remains the same and supply levels low, we can start to see an increase in prices this year. The shadow inventory of foreclosure properties that banks are keeping off the market has always been there and always will be. Banks have wised up a bit and are releasing this inventory slower as well as doing more loan workouts to avoid foreclosures. The government is also expected to relax the requirements for investment loans which should also aid in the recovery. We hope these investments don’ t get out of control and put us back where we started; however, it will require a big push from the investment community to get this market going again.
Arizona still has a positive net migration, out newest arrivals the Palin family! With a strong state economy, positive supply and demand conditions we have high hopes the 2012. Additionally we are seeing up to 30% of all purchases from off shore money. Foreign investment has seen Arizona real estate as one of the last safe-harbors for their wealth.