Housing Market Cools... Along With Weather

MSNBC reports that in addition to the cooling real estate market, the seasonal changes in real estate markets this time of year is also kicking in.

Phoenix real estate executive Rich Rector (of Realty Executives Arizona) has been seeing something unusual lately as he makes his rounds: “Open House” signs. A few months ago the market around Arizona’s biggest city was so hot that homes sometimes sold “within a matter of minutes” after they were listed, Rector said. There was rarely any need for real estate agents to drum up business as they typically do in most places -- by sitting in an empty house and waiting for would-be buyers to walk in off the street.

Mike Englund, chief economist for Action Economics, points out that the housing market tends to go into a seasonal slowdown every year at this time. Spring is a far more popular time to buy a home, so the strongest demand and price gains typically are seen in the second quarter.

Looking at sales of existing homes from 1968-2005, the median sales price typically has risen 15 percent in the second quarter, risen 8 percent in the third quarter and then fallen 5 percent in the fourth quarter.

The article has many references to the Phoenix market, quoting R.L. Brown as saying "we are seeing a decline in the rate of increase in housing prices here, and that is a very positive development for the sustainability of the housing market." More...