The housing market of Phoenix is really hot for the past few months! With a price increase of nearly 35 percent from the last year, Phoenix has acquired number one spot in price appreciation as compared to the whole country. According to the Arizona Republic Valley Home Value Report, as many as 75 percent of the houses in Phoenix have shown an improvement in price and Santa Barbara California is the only city to get ahead of Phoenix in terms of price increase. Most of the economists agree that 2013 will be a potential year for any investors planning to invest in Phoenix. So, are you interested in purchasing property in Phoenix? Hold on, here are some important points that you should consider before getting in the real estate bubble again!
Picture from the Past: Why the real estate crash happened at all?
The property market crash in 2007 left the investors wondering and shocked with its after effects. But, if seen logically, there were a lot of reasons that fueled the crash of the real estate market. Starting with loose lending practices and the option to get 100 percent financing for the house. According to experts, loose lending practices were the biggest reason for the price appreciation and foreclosure crisis that followed in 2007 onwards. In addition to it, multiple cash back schemes were announced during this period which motivated buyers to get property in the first place.
But, the current boom observed in Phoenix market is out of different reasons and for the first time in last five years, we can say that this change will last for the years to come.
What fuelled the rise of the real estate market in 2012?
If we listen to the experts, declining foreclosure sales are one of the major propellants behind the rise of house prices in Phoenix. Resale of foreclosed and distressed properties accounted for 13 percent of the overall sale, hence allowing the median price to go up and increasing the overall price of houses throughout Phoenix. In addition to the fall in a foreclosure sale, Phoenix redevelopment has taken off nicely, attracting more investors towards the Phoenix estate market.
What can we expect from Phoenix real estate market in 2013?
This is a million dollar question for investors eyeing Phoenix real estate market in the years to come. The recent increase in prices is highly motivating although the prices are not as high as that of 2003, but the chances of improvement are quite bright in 2013. Further, the strong economy of Phoenix will help in sustaining this price appreciation in the years to come (although at lower rates). Phoenix has a lower unemployment rate as compared to most of the cities in the country and the increase in sale of house seems to be logical for now. For anyone looking to invest money in real estate, Phoenix is the perfect choice.