Desert Ridge home owners endured years of lackluster news about the local real estate market, but some believe that another Phoenix housing boom could be on the way. The market is continuing to recover, with Phoenix home prices rising and fewer and fewer home owners experiencing negative equity situations. While the pace of building might never return to the 2005-high when builders were constructing close to 4,000 homes each month, the situation is improving and the real estate market is encouraging once again.In a place where home values fell by 55% between 2006 and 2011, prices are finally headed in the other direction. Prices in metropolitan Phoenix climbed 22.9% last year, marking the highest gains in the nation according to research firm CoreLogic. Incidentally, many home builders believe that the Phoenix real estate market will be a bright spot once again, and they are snapping up land for new communities in addition to resuming construction in ones they were forced to put on hold.A building boom would be welcomed considering the lack of inventory that is currently a thorn in the sides of buyers. Many all-cash investors bought up what was for sale during the downturn, turning them into rentals, and until prices rise to a level that makes current home owners comfortable, many are hesitant to list their homes for sale.
But in a market that was hit so hard during the real estate collapse, there is equal opportunity for improvement. Experts say what’s happening in the Phoenix real estate market could be a preview of what’s to come for the rest of the country.
Stan Humphries, chief economist at Zillow, says, “Phoenix is the most advanced market. It was one of the first to go into recession, and one of the first to emerge from recession. Phoenix has been a lab where we’ve gotten to see the effects of a high foreclosure rate and high negative equity.”
If you’re looking for a Desert Ridge home to call your own, I’d love to show you around. I’m a local real estate agent who specializes in Desert Ridge real estate, so please contact me to discuss your unique real estate objectives.