Residential Real Estate Housing Frenzy May Cool

The Arizona Republic reports that there are early signs that the Valley's biggest home price gains have already played out. In May, the number of homes for sale in the Valley climbed for the first time since fall of last year, a trend that is expected to continue . Buyers now have more houses to choose from, so sellers are getting fewer offers. "When home listings climb, it's a very early sign that the market is slowing," said John Foltz, president of Realty Executives. Propelled by record sales, the median price of an existing Valley home has climbed 40 percent in the past year, and have topped 6% per month for most of this year. In the 1990's, prices took a year to rise that fast. As bidding wars slow, housing prices across the Valley will begin to level out, and it will begin to take longer to sell a home. But real estate analysts don't expect home prices or values to drop. More...