Investor Activity Down in Phoenix

The highs here have been in the 60's for the past week or so, next week we will head back into the 70's again.

Investors are being partially blamed for the recent sluggishness of the Phoenix market.  It isn't really surprising that they are no longer buying homes.  Consider that the appreciation over the past two years has been over 20% year-over-year.  That sort of appreciation can't go on forever, and the appreciation rate is beginning to slow, with the Phoenix area appreciating between 10% and 15% for the first time in two years.

Also, the number of "bargain" homes has dwindled to just about nothing.  The number of Notice of Trustee's Sales being issued has declined to just 1,052 in January - very close to the number issued in 2005 and 2006 before the bubble" began.

It looks like we are heading back into a "normal" market.  Normal being a reasonable appreciation rate, more homes to choose from, and real people buying homes instead of investors.

Have a look at the graphs, and draw your own conclusions - I would like to hear them!