Phoenix’s Housing Market May Be Rising From The Ashes

April 30, 2012

in Markets

Phoenix's Housing Market May Be Rising From The Ashes

Phoenix’s housing market may be on the rise. John Burns Real Estate Consulting said the area is outpacing the recovery of other hard hit areas like Las Vegas, Riverside-San Bernardino and Sacramento. “Phoenix was one of the hardest-hit housing markets during the bust, with home values declining 57% from 2006 through mid-2011,” said Adam Artunian, senior research analyst with the company. “But since the middle of 2011, the housing conditions in Phoenix have markedly improved and prices have begun to rise.” According to the report, investors now make up 45% of all buyers in the area, and first-time buyers now have difficulty competing with all-cash offers coming from investors. This often creates a bidding war that raises the price of the home. Inventory also is very low at 2.4 months, down from almost five months just one year ago and more than 12 months in early 2008. Low inventory creates competition and has helped stabilizes prices, he noted. [Read this article]

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