The market for foreclosed homes in the Phoenix metro area appears to be approaching a turn around, according to a new index from the Center for Real Estate Theory and Practice at the W. P. Carey School.

Is recovery from recession underway? In this month's Economic Minute, Dean Robert Mittelstaedt of the W. P. Carey School of Business takes a look at the Arizona economy.

2009 was a record year for real estate transactions in the Phoenix metro market. In fact there were 2,000 more transactions last year than in the previous record-setting year, which was 2005.

Climate change — and what to do about it — has been center stage recently.

Consider all of the many ways in which information contributes to the functioning of the economy. Investors need it to assess the quality of the issuers of stocks and bonds. Employers want it to evaluate potential employees.

The Phoenix real estate market began to turn around in 2009, but the improvement was driven by foreclosures and by investors drawn to the resulting low prices, according to the latest ASU Repeat Sales Index (ASU-RSI) report.

Real estate experts are watching for signs that the Phoenix market is returning to normal. Activity slowed a bit in November — a hopeful sign because it is consistent with seasonal norms. But the market is still feverish.

Thirty-seven years ago Roy Vallee was stocking shelves at a small electronics distribution company in Los Angeles. That small firm has grown up to become Avnet, Inc., a Fortune 500 firm located in Phoenix, Arizona.

According to the latest ASU-Repeat Sales Index (ASU-RSI), overall house prices declined by 13 percent in December compared to December 2008, an improvement over the 17 percent year over year decline seen in November and the 20 percent decline in October.

In his classic book on economic history, Charles Kindleberger argued that asset bubbles follow a predictable pattern. A new opportunity or technology sparks investor euphoria. Asset prices quickly rise to an unsustainable level. Then suddenly, people stop buying, and panic ensues.