Phoenix Home Loan Activity Continues to Flounder in January

The numbers continue to point downward for the Arizona housing market.

Despite talk that there’s no overriding bubble or problem in the state, approximately 4,500 local homes sales were recorded last month in Phoenix.

That’s the lowest number of January sales since 2003, and is a decrease from nearly 5,300 in the same month a year ago, according to Realty Studies at Arizona State University Polytechnic campus.

The median home price has remained stable at $260,000, according to the ASU unit. But this still hasn’t encouraged home purchase loan activity in the city.

If 2007 is to follow the traditional pattern, the number of listings should be increasing with a corresponding improvement in Arizona mortgage demand.

However, the levels should be well below those of the last few years because the current market lacks the buyer frenzy to own and/or invest at almost any price. Therefore, owners and home mortgage brokers are forced to simply wait around and see if such a trend changes.