Catherine Reagor’s article today in the Arizona Republic, Investors heading to other markets, says the number of home buyers who told the County Recorder their permanent address was out of state declined from 26% of purchases a year ago to 17% today.
(Sidenote: 17% is still a very high level of purchases from out of state folks.)
Looking at MLS data, the Phoenix area home sales (SFR and condos) are down 25% January-May 2006 versus 2005.
Of that 25% decline, let’s assume about one-third was due to a decline in purchases from out-of-state investors. The other two-thirds would likely be due to a decline in purchases from in-state investors and from buyers who have been priced out of the market by higher home prices and higher interest rates, especially first time home buyers.
What other factors do you think could account for the decline? Email me with your ideas at the email address below my photo.