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Update on the Phoenix real estate market...

By
Real Estate Agent with Long Realty West Valley AZ RE Lic. #SA560004000

Phoenix was one of the first metropolitan areas to slip into this current real estate slump, and historically we tend to be one of the first out of such downturns.  At the peak of the market there was a lot of speculation in the Valley of the Sun.  Some estimates say as many as 25% of the homes sold here in the Phoenix metropolitan area were investment properties bought by out of state owners.  Hence the problem we have now in our market.  Many of the owners are now upside down on their homes and have negative cash flow on those properties.

At this point we have about 53,000 homes listed on our MLS, many of which are short sale or bank owned properties.   We have seen prices in some areas slip back to 2002 price points, and everything is negotiable.  We have seen an uptick in activity since the beginning of the new year, with lots of seasoned investors coming in and scooping up the deals.  We're even seeing bidding wars and multiple offers on some properties.  We haven't seen that since 2005.

In the long run the Phoenix area is still going to be a good real estate investment choice.  With the various demographic shifts occuring in the U.S. and baby boomers retiring Phoenix and the surrounding areas will be an attractive choice for people to lay down roots.

Please visit us at www.ArizonaPremiereLiving.com for more information about the Phoenix real estate market.

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