Phoenix Real Estate Forecast.... PARTLY SUNNY!

According to the experts of the National Association of Realtors, NAR, the strength of the national real estate recovery remains in question. Here in Arizona, our housing prices are still reacting to an inadequate supply of homes for sale. However, the NAR is concerned that the pace of recovery will slow due to difficulty in obtaining housing due to weak income growth and greater lending restrictions.

According to the Bureau of Labor Statistics, the unemployment rate fell to 7.4% in July, but more importantly, average hourly earnings and average weekly hours worked decreased. The unemployment rate is actually closer to 15% if we add in those workers who are underemployed.

For the 1st time since November 2012, home listing prices decreased nationally from June '13 to July '13. Rising mortgage rates, growing inventory and declining investor demand lead to this dip in prices. However, looking at the bigger picture, asking prices are still strong rising 11% from July '12 to July '13. In addition, the NAR reports that the housing affordability index showed housing is still very affordable.

Looking at RENTS for July '13, Trulia reported an increase of 3.9% in rental rates from July 2012 to July 2013 nationally.. However, like home sale pricing, rental rates also seem to be leveling.

So, if you were waiting for home prices to level off before putting your home on the market, now is the time. And, if you are a buyer, now is the time to take advantage of the historically low mortgage interest rates.