Expert's Corner: View of the Arizona Housing Market

  • Posted on: 9 December 2015
  • By: admin

Expert's Corner: View of the Arizona Housing Market

The residential real estate market in Greater Phoenix has become quite exiting. Many signs are pointing for our local market to be in full recovery mode. Delinquencies on mortgages are down 49% from the peak of the recession and foreclosures are down 76% form the peak. Good signs we are getting back to a more “normal” market. In addition there are good signs of appreciation. The average sales price was up 22.9% in 2012 and new home sales were up 41%. The inventory of homes for sale has continued to shrink over the past few months.

 

With this type of news, many say we will be off to the races with big home appreciation and a frenzied market. I call for a more cautious outlook. The Phoenix average and median home prices are somewhat distorted. For the last 2 years investors have been buying up the very low end homes under $100,000. These owners were the hardest hit with the sub prime loans. Now most of the supply of these homes have been exhausted to a more normal level. This effect makes the most recent average and median sales prices jump. Not all homes have increased over 20% in Phoenix.

 

For the past 4 years many people have wanted or needed to move but have been unable because their homes were underwater. As their home has gained enough value to “just get out of it,” many homeowners have opted to sell and take advantage of all time low mortgage rates and reasonable home values. This translates into a gradual process of homes gaining value as people making a move when the numbers add up.

 

The market for homes under $250,000 is moving very quickly as rents for those homes continue to rise. These homes are valued on potential rents due to the large pool of investors and the homeowners looking in this range weighing the own versus rent dilemma.

 

If you have question on specific areas of the valley please give me a call. I am always happy to discuss the ever-changing real estate market. 

John Schloz is a real estate agent with Home Smart Real Estate.  To contact John, please call him at 602-570-5905.
 
The views and opinions expressed are not those of Pathlight Investors and are intended to be for educational purposes only. Pathlight Investors cannot vouch for the accuracy of the information presented. Please contact the author of the article to determine how this information pertains to your specific situation.