Everybody makes a series of choices, and it goes down to the age old 'buyer beware' at some point.
Condo conversion is rapidly running its very short course.
Looking at the preliminary numbers, obviously February was a disappointment compared to last year and year-to-date.
If builders were thinking of empty sales offices, they clearly would not be raising prices by an average of $4,300. It's a demonstration that builders are not seeing anything out there that scares them.
The metro Phoenix housing market is returning to normal after an extraordinary year that allowed housing prices to rise much more rapidly than at any time in history.
You can spend a lot of money, maybe $75,000 to $100,000 for a full rehabilitation, but you end up with a close-in neighborhood, mature trees and no commute.
This is primarily a population-driven housing market, and as long as people want to move here this will continue to be a booming housing market.
The bottom line is it is a market in transition now.
To forecast the end of this housing market (boom) you need to forecast when people will stop moving here.
I think we'll see permits down in February, but I thought we'd see them down in January.
