The Phoenix real estate market is back, and is moving in a positive direction. According to the existing home sales numbers issued by the National Association of Realtors, Phoenix was the best performing market in the United States. More importantly, it isn't just inventory that’s reducing, but prices are coming back as well.
The Phoenix market had a 35% increase in the average home price over the same month in 2011. This is due in large part to the number of foreclosures that flooded the market in 2011. In fact, in September 2011, 50% of all of the homes sold in Phoenix were foreclosures. The downward pressure on pricing that foreclosures is the absolute biggest factor in those reduced prices over the last few years. Banks in many cases just want to get the home off of their books , and any reasonable offer was accepted. When those sales figures started to be factored in, prices plummeted.
Now that those foreclosures have worked their way through the system, just 13% of the homes sold this September were foreclosures. The best news of all? Analysts predict that the trend will continue into 2013.
New home construction, which previously had been almost non-existent and which often pushes prices in an area up, is back with a vengeance. That coupled with low unemployment in Phoenix l, strong demand from retirees, and excellent affordability of quality housing - the market is primed to be strong especially in the most desirable areas.
If you are currently considering purchasing a home in Phoenix or a surrounding area, please contact us! It would be our pleasure to share with you all of the wonderful opportunities that currently exist in the Phoenix real estate market.
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