This guy does a good, quick and dirty explanation of the downside risks to the U.S. residential real estate market.
- We survived the first wave of foreclosures, but
- There is another wave of foreclosures coming, as well as
- Higher interest rates.
For metro Phoenix, I feel pretty confident that SOME zip codes have already bottomed out because the number of homes sold has been extremely high in recent months. Those sub-markets with their extremely low prices and high sales would likely be able to absorb the second wave of foreclosures without lowering prices any further.