We’ll see a ton of closings in the next 45-60 days… and then mush, especially for starter homes (inexpensive, smaller homes).
Many people who were thinking about buying a home in the next few months, especially first time homebuyers, moved up their plans and just bought a home, or at least put a home under contract in April.
That canabalizing of future Arizona home sales makes me think we will see a fewer number of starter homes sold in July and August.
Combine that slackening demand with the possiblity of a supply bump from banks completing more pending foreclosures, and we could see a blah real estate market nationally.
Locally, I think prices are so low in many zip codes that the market will clear without significantly lower prices. In other zip codes, however, home sales could be mushy and prices soft.
I reserve the right to change my mind after lunch.