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Old 08-23-2017, 08:41 AM
 
Location: Sonoran Desert
39,124 posts, read 51,388,584 times
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An surprising piece of economic news came out this morning. New home sales dropped nearly 10% from last month while they had been expected to grow very slightly. Year over year, they are down about 9%. The downturn includes the west. This could suggest that home prices have reached the point where there is buyer resistance although a labor shortage is also to blame - a problem in the Phoenix area now. On the other hand, rising inventories of unsold new homes could portend a price reduction in the coming months.
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Old 08-23-2017, 08:55 AM
 
2,560 posts, read 2,309,777 times
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Quote:
Originally Posted by Ponderosa View Post
An surprising piece of economic news came out this morning. New home sales dropped nearly 10% from last month while they had been expected to grow very slightly. Year over year, they are down about 9%. The downturn includes the west. This could suggest that home prices have reached the point where there is buyer resistance although a labor shortage is also to blame - a problem in the Phoenix area now. On the other hand, rising inventories of unsold new homes could portend a price reduction in the coming months.
No, as posted many times here, housing prices only go up.
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Old 08-23-2017, 09:47 AM
 
Location: Sonoran Desert
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Originally Posted by Burkmere View Post
No, as posted many times here, housing prices only go up.
Actually, in the long view they do.
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Old 08-23-2017, 09:49 AM
 
2,560 posts, read 2,309,777 times
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Originally Posted by Ponderosa View Post
Actually, in the long view they do.
That's what I said!
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Old 08-23-2017, 03:27 PM
 
Location: Gilbert, Arizona
2,940 posts, read 1,820,307 times
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Would folks recommend buying with <20% down on a conventional loan + pay PMI or rent and go 20% for a first time home buyer to take advantage of the interest rates/market situation? That's the situation I'm in right now.
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Old 08-23-2017, 10:30 PM
 
4,222 posts, read 3,757,314 times
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Quote:
Originally Posted by Ponderosa View Post
An surprising piece of economic news came out this morning. New home sales dropped nearly 10% from last month while they had been expected to grow very slightly. Year over year, they are down about 9%. The downturn includes the west. This could suggest that home prices have reached the point where there is buyer resistance although a labor shortage is also to blame - a problem in the Phoenix area now. On the other hand, rising inventories of unsold new homes could portend a price reduction in the coming months.
Not seeing any data that supports this locally, 2017 has been a solid year so far in Phoenix for both new and existing home sales. A labor shortage and shrinking land availability in desirable areas could help support the more developed sub markets. As is always the case with real estate, it's all about location.
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