Tag Archive | "Arizona"

Phoenix Housing Market Showing Signs of Strength

The Phoenix residential real estate market has started to show signs of strength and recovery in recent months. It was one of the worst fairing housing markets following the housing crash, as prices fell almost sixty percent from 2006 to 2011.

 

Over the last six months, however, the market has started to recover thanks to a variety of factors. Foreign buyers and investors entered the market looking to take advantage of great deals. Job growth in the region picked up, and with more job creation came greater demand for housing. Inventory levels have shrunken to very low levels.

 

Immediately following the crash in 2008, residential real estate inventory levels were over twelve months in supply. That number has since fallen to roughly two and half months of supply. With inventory levels at such low levels, buyers have no choice but to engage in bidding wars for the properties that they want.

 

The bidding wars had led some areas in Phoenix to shoot up in price. The city of Phoenix as a whole is believed to have already hit its bottom in terms of pricing. As such, prices have increased in the region over the last few months.

 

Many economists believe that the true test for Phoenix will come this summer. Much of the market will be starting to recover at that time, and it will be interesting to see how Phoenix stacks up with other major cities.

 

The Phoenix market has benefitted over the last few months due its warm weather, and the presence of the MLB Cactus League games. Those games have brought potential homebuyers to Phoenix.

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Housing Market in Phoenix Finally Starting to Recover

Phoenix has been home to one of the poorest performing housing markets in the United States over the last few years. Analysts are hopeful, however, that the city’s property market will take a turn for the better in 2012.

Despite being known as one of the weaker markets in the United States, Phoenix’s residential real estate market has now posted twelve straight year-over-year increases. That trend will likely continue well into the next year. Homeowners in Phoenix are very pleased with the improved performance, as are realtors in the region. Supply has dropped significantly, and demand is at the highest level it has been in years.

While the last twelve months have seen small gains, housing market analysts believe that prices may see a strong jump in the next year. Some believe that housing prices may increase by as much as ten percent. The significant drop in foreclosures will most certainly play a major role in the strong improvement in prices. The number of foreclosures has fallen by more than sixty-five percent in the last two years. They are now at their lowest rate since 2007.

Phoenix still isn’t out of the woodwork just yet, despite all of the positive news. The city still has a high percentage of homes that hold negative equity. The job market in the city also still leaves a lot to be desired. Even with that said, however, investors are looking to the Phoenix housing market, and consider it an excellent buy. Housing prices are still severely discounted, and with the market expected to increase, there is a lot of room for profit for investors.

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Phoenix Housing Prices Remain Stagnant Despite Increasing Demand

While the overall housing supply continues to decrease and demand increases, average home prices continue to remain stagnant in the Phoenix housing market. The lack of growth in prices has many housing experts in disbelief, as current trends buck the typical laws of supply and demand.

With foreclosures down, and homes selling faster than they have in quite some time, it would only make sense that housing prices would gradually increase. However, prices have actually declined in many areas. Only three Phoenix communities have experienced any growth in average home prices.

Analysts believe that supply and demand laws are only a small piece of the overall equation in the calculation of home prices, particularly in the current market. They attribute the current phenomena being experienced in Phoenix to the appraisal of homes, which serves as another component in determining houses prices.

The overall appraised value determines the size of the mortgage that can be secured by the homebuyer. After being accused for years of overvaluing properties during the housing boom, many appraisers have been very cautious and conservative in their appraisals. Furthermore, the current state of the housing market on a nationwide level has also contributed to low appraisals.

With demand at its highest level in years, and prices continuing to remain artificially low, many investors are flocking to Phoenix. Many investment firms see the Phoenix market as a tremendous opportunity to turn profit by purchasing rental homes. If the prices continue to decline, however, the overall demand for homes on behalf of homebuyers and investors may decline. With prices steadily dropping, demand will eventually follow suit, as many prospective buyers will opt to wait so as to get the best possible deal.

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Tucson Defends the Health of Its Real Estate Market

Despite the most recent reports that gave Tucson, Arizona the dubious distinction of having the worst real estate market in the United States, realtors in the city claim that the city’s housing market is doing well. It is its vacancy rate of nearly seven percent that earned it the less than stellar title.

However, realtors in the area have been quick to defend the city, claiming that the majority of vacant homes were actually second homes for most people. They believe that the vacancy rate should not have been used in the report due to its inaccuracies. In addition, realtors are also speaking out against the use of median price. The city has seen the sale of some very low-priced homes as of late, which pushed the median sale price down.

Other published reports have actually placed Tucson near the top of the best real estate investment opportunities. It is these conflicting reports that lead many to question just how healthy or unhealthy the Tucson housing market is. After all, home prices have dropped over thirty percent in the past few years, and two out of every one hundred homes sold winds up in foreclosure.

If there is one thing that is for certain about the Tucson real estate market, it is that it has become a great market for buyers. With an improving unemployment rate, and low prices on houses, buyers are starting to recognize Tucson as a great place to buy a new home. Realtors argue that the report that called it the worst real estate market couldn’t be more wrong, and that the city is quickly growing due to its affordable housing options

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Analysts Unsure about Phoenix Real Estate Market

In general, analysts usually have a pretty good idea as to the state of the local real estate markets. They are able to evaluate its condition based upon sales, values, mortgage loans, and even the general attitude of people living within the area. In the case of Phoenix, Arizona, however, there is more uncertainty than ever. Due to that uncertainty, analysts simply have no idea as to whether or not the real estate market is improving, or if it is remaining stagnant in its depressed state.

Phoenix once had an insurmountable amount of foreclosures that literally crippled the market. Fortunately for the city, the number of foreclosures has dropped dramatically. According to analysts, a decline in foreclosures usually coincides with increased sales and prices. However, Phoenix has not seen such an increase, as prices remain stagnant, and homes continue to sit on the market.

Local residents are providing a mixed bag as well, too, which further throws off real estate analysts in the area. Many residents claim that the job market in Phoenix is absolutely abysmal. They believe that the housing market will continue its struggles until something is done to improve the job outlook. While some say it’s a great time to buy a home in Phoenix, others are strongly against the idea, as they believe the city still hasn’t yet hit rock bottom.

On the other hand, there are reports that houses are being purchased as soon as they become available in some cases. People are showing interest and placing bids on homes only to find out that they have already been sold. While the tightened lending standards of the banks have made getting a mortgage loan increasingly difficult, some are reporting that buyers are using cold hard cash to make their housing purchases.

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More Than a Quarter of U.S. Homeowners Owe More Than Their House is Worth

The news about the current state of the United States housing market continues to get worse in many areas of the country. Most recent reports indicate that more twenty five percent of homeowners in the United States are faced with underwater mortgages, meaning that they owe more than their house is actually worth. That is largely due in part to the fact that home values have fallen more than thirty percent in the last four years.

The current situation may once again cause a number of foreclosures on homes, which may lead to more troubles for the embattled real estate market. There is excess in the supply of homes with little demand due to various economic factors. Some cities and states are in far worse shape than others. Most areas that overbuilt during the prime years are hurting significantly. These states are mostly those that in are in warm weather climates, such as Georgia, Arizona, and Florida.

There have been some areas that have seen their housing markets finally level off, though it is highly unlikely that they will reach the levels of pricing and sales that once existed just a mere four years ago. Although it would seem as if the current market provides potential homeowners with an excellent opportunity to buy a home, many of these candidates are instead opting to rent due to fears of unemployment and volatility in the stock market.

With homeownership looking less attractive for many, those that have rental properties are seeing their investment grow more and more lucrative. Ironically, with the demand of rentals increasing, rent prices have risen to the point that they are actually more expensive than the costs of buying a home in the current market.

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