The housing market is often a good gauge of the economy. It shows the attitude of the Federal Reserve, behaviors on Wall Street, and the spending availability of the public. Arizona is one of the hottest (pardon the pun) housing markets in the country because of the huge growth in the valley prior to the mortgage collapse. There are a lot of houses here and a lot of house building companies.
I recently came across an article that illustrates one of the oldest principle of economics — supply and demand.
The East Valley housing market is starting to see a turnaround in home sale prices.
But with that turnaround, a spectre left over from the Great Recession looms: During the last few years, building had slowed down dramatically due an overabundance of available houses.
So as prices and buyers pick up, supply is being squeezed.
Read the entire article at http://www.eastvalleytribune.com/money/article_5839a264-6a78-11e2-a517-0019bb2963f4.html