Arizona Real Estate Notebook

That article title and the positive spin by Catherine Reagor confuses me because she used to trend significantly negative in her outlook.

Now I’ll highlight the “half-empty” quote about the outlook for the Valley new home builders.

New-home prices have dropped since last year, which also is helping sales. The typical new Valley home price shot up to $285,000 during the frenzy of 2005, but this year slipped back to the $255,000 range.

But the report’s publisher, housing analyst RL Brown, said based on home-price increases during normal years like 2002 and 2003, the median price of a new home likely should be even lower, in the $220,000 range now.

So he’s suggesting that Phoenix new home prices have come down $30,000 but they have another $25,000 to go to be “normal.” I’m certainly not ready to call a bottom for Phoenix home builders… or for resale homes in areas that compete with new home builders. We may only be half way through the market correction in those areas.

Metro Phoenix now leads the country for condo “reversions.”

“… more than 2,946 condos are being turned back into apartments in the Phoenix area…”