According to a news report in AZCentral, the Greater Phoenix Metro areas’ market has fractured into numerous different niches. Some experts claim that homeowners feel trapped in homes they can’t sell, while others say real estate agents can’t find enough inventory to keep up with the demands of buyers.
It seems the further we slip away from the market crash of five years ago, the more confusing the market becomes.
The foreclosure market– or homes that are being sold at auction as trustee sales– is booming. The prices are rising on these homes and there is a huge demand from buyers seeking to get in on these deals that are in limbo between the time the homeowner gets foreclosed on and the time the bank reclaims ownership of the property. Because of this high demand, today’s buyer can expect to walk into a trustee sale auction and purchase a home at market value.
On the other hand, traditional resell and larger single family home sales in certain regions are virtually non-existent. With a market so split, it’s hard to use traditional measures to gage the health of our real estate industry.
One way to determine how our market stands is by the number of homes for sale. A healthy market should have 20-25,000 homes in inventory at any given time. When the market crashed in 2007, 60,000 homes sat on the market at once, causing housing prices to plummet. A majority of this surplus was due to the large construction boom.
The most recent Cromford Report, an online real estate data report, shows that today the listed home inventory in the Phoenix Metro area is around 27,000 and still falling. This is a sign of rising demand with rising prices soon to follow.
If you are in the market to invest in the Phoenix Metro area, now is as good of time as ever make your move. As the demand in the market increases so will prices, making the market highly advantageous for investors like you.
Call Capital Fund I today to find out how you can make the most of your investment home purchase. We can fund private loans quickly, allowing you to purchase and resell homes at a faster rate.