It was written about the metro Washington D.C. real estate market but this article sure sounds like it’s describing the metro Phoenix real estate market.
The ” super hot” housing market in the Washington area began to normalize in mid-2005. Housing supply increased rapidly as investors dumped their units onto the market in an effort to capture the value gained in the preceding years. Simultaneously, demand conditions softened temporarily during the second half of 2005 in response to higher energy costs, interest rate fears and media-fueled concerns over the housing market’s gradual slowdown.
This normalization process continued in 2006 and was accelerated by further energy price increases during the year’s second quarter. The excess units on the market should be largely taken down by the first quarter of 2007 with price stability occurring during the first half of 2007 as demand solidifies in response to interest rate stability, declining energy costs, rising consumer confidence and positive seasonal factors associated with spring housing market activity.
It’s gotta be true because the author has a Ph.D.