Meredith Whitney, the famous financial pundit, expects a second leg down in the U.S. housing market.
http://plus.cnbc.com/rssvideosearch/action/player/id/1442226381/code/cnbcplayershare
I think this is certainly plausible with all the pending foreclosures overhanging the market. However, I think in many areas of the Phoenix real estate market prices are so low already that those sub-markets can clear the additional supply without lower prices, or significantly lower prices, anyway. However, a double dip would bring down prices in areas of metro Phoenix that haven’t seen their home sales per month return to “normal” (early 2000s) numbers.
http://plus.cnbc.com/rssvideosearch/action/player/id/1442287196/code/cnbcplayershare
Don’t forget that Arizona is not the United States. Arizona will likely bottom out before the rest of the country and we could become a bit of a “safe haven” for investors a year or so before the United States as a whole starts to bounce back. In that case, it’s not the absolute strength of Arizona’s economy but it’s relative strength that will draw investment, including real estate investment.
ADDED: Cool! We got a link from Bigger Pockets!