I attended the Luxury Home Tour this morning and was encouraged by the upbeat feeling in the room about an increase in real estate activity, particularly in the lower end market. Inventories on the lower end seem to be decreasing, which is always the first sign to a market turn around.
The AZ Republic last Sunday had an article on real estate in San Francisco and Las Vegas, markets that tend to lead ours. Both cities are experiencing a flurry of activity, and believe they have not only hit bottom, but are on the way back up.
Based on my own study of inventories in the Phoenix metropolitan market, I believe we have hit bottom as well, and will be showing signs of rising in the near future. We must remember that real estate indicators are lagging. In other words, activity today will not hit the statistics until after the closings hit county records - a minimum of thirty days from now, but probably much longer. The fact that banks are once again mandating 30 day closings instead of 2-3 weeks is also a good sign of their current activity.
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