Home price forecast (1 year):* -18.5%
Phoenix attracted the overflow of rabid California real estate buyers who flocked to nearby areas to invest in less overpriced properties. The result was that Phoenix caught the last stages of the irrationally exuberant housing bubble and residents are now paying for it.
Phoenix became one of the hardest hit foreclosure cities of the four "Sand States," California, Florida, Arizona and Nevada, where delinquency rates were the highest in the nation. Nearly 140,000 homes went into foreclosure in 2009. Many are back on the market, swelling supplies of homes for sale and depressing prices. Another 18.5% price decline is expected this year.
Is this a good time to buy a home in Phoenix?