The portion of the inventory that is considered distressed is still much smaller than it has been for years, and will continue to be that way.

If you look at the number of listings in the inventory, above, you will see that we had an increase in “normal” listings at the end of last year. That is because people who bought during the really low points or before about 2003 are putting their houses on the market. You see that January inventory is down a little bit.  I’m guessing this is because people think prices will go up, so they are holding off listing. But that’s tough to say –and it is a bit of a gamble for those folks who think they should wait.

Here’s why: while most folks think interest rates will stay where they are this year, I’m also hearing loan officers reporting that rates are starting to go up. You don’t want to try to sell a house while the interest rates are higher. It erases all of the price increase you were waiting for!

Still, you can see in this chart that the prices continue to go up, generally.

This is why you will see fewer investors in the market. First, their ability to get a super cheap house which they can flip up is going away in most areas. Second, it is more difficult to turn that house in to a rental and get cash flow when you bought it at a higher price.

I expect to see more “normal” buyers in the market, as those people who lost their credit scores recover and decide to pick up a new home.

If you are thinking about listing you home (even for short sale), please give me a call and let’s meet. If you are thinking of buying, let’s grab a cup of coffee and talk about your plans. We can build a strategy that gets you the home that you are looking for.

Call me at 602-456-9388.

Thanks again to all of you who attended our 4th year anniversary with the risk takers at “The My Florist Plaza.” And of course, thanks to our risk takers Boutique Solie, Community Florist, Olivastro Oils, NYPD Pizza, Salon D’ Shayn, Strut Bridal Salon. Special thanks to NYPD Pizza for sponsoring the event and to all of the businesses to contributing a record 20 prizes, which were raffled off to over 100 attendees.

We are bringing down the mood lighting a little bit in February, as we celebrate Tertio Wine Bar at 7th St and Osborn. Disguised as the mild-mannered “Urban Beans” during the day, Tertio comes out at night to delight with an impressive menu.

Tertio has put together a four-course meal and wine pairing, lead by Empty Glass Wine Company, a cutting edge wine rep that specializes in organic and “biodynamic” wines from Croatia, Slovenia, Austria and Hungary. Each course will be accompanied by wine selected to complement that course and comments from the wine specialists and chef.

You might recall that we did a wine and cheese pairing at Urban Beans a couple years ago. We are stepping it up a notch and revisiting for two reasons. First, obviously, Tertio is a great experiment in the European-style cafe model. Second, we know that 7th St and Osborn is about to be populated with more restaurants –a couple may possibly be chains. We want to support our friend Virginia Senior as she launches this new phase in the growth of her business.

This event is a pre-paid affair because the menu will be created specifically for this event. Each of Virginia’s exclusive four-course meals are thought out weeks in advance. If you have special dietary needs, please let us know when you purchase your reservation.

Virginia usually charges $55 per person for these meals and wine pairings. She is charging only $48 for Get Your PHX friends, exclusively. She is asking you to reserve in advance by emailing Tertio at tertiowinebar@gmail.com. Ask for Virginia and remind them that you are purchasing the Get Your PHX engagement price.

We have more to announce, so stay tuned. There will be a raffle and hopefully a special surprise.