Good Real Estate News on the front page of the paper

This weekend, on the front page of the Arizona Republic they actually shared positive news about the real estate market.  The housing market, priced under $350,000 is seeing lots of recovery.  We have a closer to normal supply of homes at just over 7 months.  Over the $350,000 we still have a 17 month supply.  My broker, Jim Sexton was interviewed for the article.

What is it about the magic number of $350?

Well the FHA home purchase amount in Maricopa county is about $355,000.  An FHA loan allows someone to purchase a home with 3% down and their closing costs. If you ask the seller to contribute to your closing costs, and/or down payment assistance programs (available until October 1, 2008) a buyer can purchase with little or no money down. 

Other conventional loans require 20% or more down payment.  So you can see why FHA loans are popular, and why homes are selling quickly in the acceptable price range.