Arizona's largest city went through one of the most volatile housing market cycles of any. Prices there more than doubled between January 2000 and the top of the market in May 2006. Since then, they've dropped back nearly to their early-2000 levels, according to the S&P/Case-Shiller index.
"There's just so much back inventory and buyers are very savvy," said Tanya Marchiol, of Team Investments in Phoenix.
She anticipates years of bargain prices in the area. One reason for that optimism is that Fannie Mae and Freddie Mac, the giant mortgage companies, are selling off their repossessions in bulk, which investors are buying and flipping, adding to already long inventories.
This remodeled ranch home has had its price slashed four times since June. The current price of $107,000 is a whopping 28% less than just nine months earlier.
On average, according to Trulia, sellers wait about 48 days before they cut their listing prices by an average of 8%. The majority of homes then go through at least two reductions.
For more information: Trulia
NEXT: Tampa, Fla.
