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In many cases, the end of the year gives you time to step back and take stock of the last 12 months. This is when many of us take a hard look at what worked and what did not, complete performance reviews, and formulate plans for the coming year. For me, it is all of those things plus a time when I u...
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Why is the Phoenix Housing Market Doing So Well?

LOS ANGELES, Nov. 16, 2012 /PRNewswire-iReach/ -- Just like its summertime temperatures, the housing market in Phoenix is extremely hot right now! In fact, Phoenix was the best-performing metro in the country in September, with prices showing an increase of 35% when compared to the same month in 2011. And, it's not just in one part of town either! According to the Arizona Republic's Valley Homes Values report, 75% of the city's ZIP codes saw home values climb during the first nine months of 2012. What's the reason for the increase? Economists say it's because of a decrease in foreclosure re-sales. In 2011, 50% of all home sales in Phoenix were foreclosed property re-sales by lenders. Since banks are only trying to get back some of the money they lost on the defaulted loan, these homes usually sell for much lower prices. This year, though, foreclosures have only accounted for 13% of home sales around Phoenix. With fewer inexpensive foreclosure re-sales, the median price of homes in the region has been able to go up. Plus, many communities around the area are currently under redevelopment. Others are experiencing a boost in new homes being built and sold. And, as an added benefit, Phoenix has a stronger economy than many similar-sized cities around the country. So which portions of Phoenix are seeing the most growth?

- Central Phoenix, up to North Phoenix and the Desert Ridge area, has seen the highest price increases, with a median home price of $90,500. This portion of the city is undergoing redevelopment and has become a hotbed for prospective buyers looking for affordable homes.

- Prices in the Northeast Valley have fluctuated, depending which suburb you look at.

- Other municipalities, like Paradise Valley and Fountain Hills, saw slight but steady increases. - In the Northwest Valley, prices have increased by more than 20% (especially in Glendale). However, places like Sun City and Sun City West have seen decreases. The price increase in Glendale shouldn't come as a surprise, as there are many higher-income neighborhoods within that city. But the drop-off in Sun City was unexpected, as many homes in that town are within retirement communities, and those homes typically hold their value through the ebbs and flows of the real estate market.

- In the Southeast Valley, new home sales are having a positive effect on the median sale price of existing homes. More than half of all the new homes being built in metro Phoenix this year have been in Mesa, Chandler, Gilbert and Queen Creek. These higher-priced new homes have elevated the communities' overall median home prices, with Mesa posting the highest increase at 34%. There are also less foreclosure re-sales in this portion of the metropolitan Phoenix area than in others, so that has also boosted the median price.

- Homes in the Southwest Valley are typically among the more affordable properties in all of Phoenix, and buyers are taking notice. For example, some portions of Tolleson and Buckeye (where the median price is right around $100,000) have seen more than a 20% increase this year. What does the future hold? Realtors and housing analysts agree that Phoenix will continue to be one of the nation's hottest housing markets in 2013, but don't expect to see sale prices increase at the same levels they did in 2012. The economy is recovering quicker in Phoenix than in other parts of the country, and the city has a lower unemployment rate than the national average, so home sales have risen. But that doesn't mean the area will experience the same house booming next year as it did this year. Look for more increases -- but slower ones. Still though, Phoenix is definitely a place to consider purchasing property in the years to come!

http://www.realtypin.com

Media Contact: Daniel Torelli RealtyPin.com, 514-836-1432, daniel@realtypin.com

News distributed by PR Newswire iReach: https://ireach.prnewswire.com

 

SOURCE RealtyPin.com

About PR Newswire
Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

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