The article, January Valley home sales plunge from a year ago, from the East Valley Tribune, reports that a total of 1,848 new home closings occurred in January, down 51 percent from a year ago, according to the latest Phoenix Housing Market Letter from RL Brown. The lack of consumer confidence is perhaps the largest issue at this point, said Brown. "I think consumers are concerned about the direction of the economy," he said. They're confused about what to expect relative to their own security and employment." Money is available to borrowers with good credit, but they aren't biting, Brown said. Building permits for new homes also fell by 52 percent last month to 1,370, the lowest January total for permits in more than a decade. The median price of a new home fell to $231,771 in January, compared with $274,995 a year ago.

It will be interesting to see the February numbers. Based on sales or lack thereof as stated by many of the Realtors in our town of Fountain Hills, we are not predicting a strong finish. Although there seems to be more "lookers". However, the hesitation to go forward with a purchase is most prevalent. And for those "would be" purchasers that do decide to take the plunge do so with low ball offers often going nowhere. I will say that we are seeing more of those million dollar plus homes go under contract. The conclusion being that a percentage of buyers in the upper price range are clearly not affected by the current economic climate.