Phoenix Real Estate Report by Mike Orr

[Ponderosa]

Warren Buffet said today that single family residences are a great investment at the moment and that, if he could, he would buy "millions" of them. Buffet is a very savvy investor and many hang and move on his advice. Maybe it will spur even more investor activity in the home markets.

[sh9730]

Thanks Capn.

I will say I HAVE noticed a little spike in listings (based upon my search parameters I use) over the last week or so down here in Casa Grande (from below 120 to 130+ now). Hard to say whether that is due to buying interest waning (it had been holding pretty steady under that 120 listing mark for about a month prior - i.e. when new listings were added another one sold keeping inventory steady at a low level), or whether more people are listing their property as their equity comes into a little more balance after years of making payments and the recent price rises. It also could be just the normal spring increase in listings starting to show up.

I suspect it may be a little of all of the above. We ll have to wait and see....

[Captain Bill]

Originally Posted by Ponderosa

Warren Buffet said today that single family residences are a great investment at the moment and that, if he could, he would buy "millions" of them. Buffet is a very savvy investor and many hang and move on his advice. Maybe it will spur even more investor activity in the home markets.

I'm not surprised. It goes along with his long time philosophy.

[Captain Bill]

Originally Posted by sh9730

Thanks Capn.

I will say I HAVE noticed a little spike in listings (based upon my search parameters I use) over the last week or so down here in Casa Grande (from below 120 to 130+ now). Hard to say whether that is due to buying interest waning (it had been holding pretty steady under that 120 listing mark for about a month prior - i.e. when new listings were added another one sold keeping inventory steady at a low level), or whether more people are listing their property as their equity comes into a little more balance after years of making payments and the recent price rises. It also could be just the normal spring increase in listings starting to show up.

I suspect it may be a little of all of the above. We ll have to wait and see....

People tend to add listings in the early part of the year when the buying season starts, and with the low inventory it's good to see some new listings being added. I'll be adding a new listing today that we've held off the market for a little over 3 months.

Then in mid-March I'll add another one from a client whom I advised to wait until the buying season is underway.

[Potential_Landlord]

As I said before once the t-bond market starts to slide and mortgage rates move up, I think we will see a rush of buyers step into the Phoenix RE market "before rates go up even more". The break in the t-bond market is at hand IMO and mortgage rates should go higher henceforth. This will create a whole new dynamic in our RE market IMO leading to new ATH prices in a much shorter time-frame than many thought. Just my 2c of course.

[sh9730]

Oh - since this one brought back up again - my active listing search in CG that had a slight spike last week (see post above) - has come right back down to 120 again today...