As we mentioned last week, if you are considering purchasing a home with FHA financing, we would suggest that you identify a property to place into escrow by December 31st.  As of January 1, 2009 the down payment requirement for FHA financing will increase from 3% to 3.5%, and the loan limit will decrease from $346,250 to $271,050.

Current conditions in the Phoenix Market

Today there are 45,374 single family detached listings in the Phoenix metro area MLS.  That is an increase of 266 listings over last week. 

Total listings (including condos, townhomes, and patio homes) is 55,158 which is an increase of 362 listings from last week.

Although it is not uncommon to see inventory increase during the Fall and holiday months, the key to moving back into a stable market will be the absorption of more inventory.

The interest rates for conforming loans have dropped slightly this week, which is good news. 

In reviewing and comparing the statistics from the same four week period of October/November last year to October/November of this year, sales are up 7%.

The absorption rate (the number of listings going pending, versus remaining active lisings) has risen to 12% this week.  Most of the absorption is taking place with investors purchasing bargain foreclosure homes in the outlying communities.