Last week we wrote a post telling our readers and customers how the market has hit bottom and is in the process of rebounding. This week the East Valley Tribune has a story talking about how new home prices have stabilized in the Phoenix housing market.
A report by RL Brown showed the median new home price had risen from $208,045 in January of 2009 to $210,000 in February. While new home starts was down to 713 in February from 733 in January, the number appears to also be stabilizing. New starts in February of 2008 and 1,813.
With the reduction in new home starts over the last year the supply is finally being absorbed by the market which is allowing prices to recover. It is estimated that the construction permits will now start to recover too and could reach 1,500 within the next three to four months.