Phoenix arizona real estate
Arizona a buzzing Centre for Real EstatePhoenix is the official capital of Arizona and is the sixth largest city in the United States. Phoenix is considered as the largest city in Arizona but it is a young city by historical standards. Phoenix boasts of warm weather during summer and a comfortably cool winter.
Comfortable weather conditions and affordable cost of living have made Phoenix real estate haven. Properties are diverse. New condominiums or lofts constructed in downtown Phoenix are popular. There are estates edging the main street. New homes are found sprinkled all over the city. There are homes and properties to suit the tastes of every one. Phoenix metro area has seen huge growth in population and employment. Climate and economy continuously attract relocation. The recent two years have witnessed good appreciation in real estate values.
However the year 2006 saw a correction in home values. The average sale price of homes hovered around $350,000. With the exception of small variations, prices were steady throughout the year. The variations were also zip-code specific. Real estate value is reasonable compared to the other states. Even with the oscillation in cost, average prices remained almost the same.
What are the reasons that attribute to a steady and even market in Phoenix?
1. There is low unemployment level. People have access to disposable income to pursue their ambition to buy homes.
2. Banks offer loans at low rates. They are ready and willing to lend to qualified home buyers.
3. Phoenix is a beautiful place to live, work and raise children.
4. Land is limited to build new homes. This has resulted in continued pressure on re-sale homes.
One way of assessing a real estate market is considering its absorption rate (time required for the homes currently put up for sale to be actually sold). Absorption rate in Phoenix is about 6 months currently. There were times in 1990s when the absorption rate was abnormally high around 18 to 20 months. More number of homes was available for sale then.
The year 2005 saw homes sold within 1 ? 2 months and buyers were in fact lined up in front of homes. Demand far exceeded supply during those years. The year 2006 almost witnessed normalization of that trend. Currently in 2007 the absorption rate of 6 months is found to be normal by experts. Demand and supply are kept balanced.
The time of correction appears to be ending. People are out there buying homes. The city is home to a wealth of activities. It is poised to grow further. If you are an investor in real estate, go ahead and find a home you like and can afford. In case you are a seller, locate a realtor who can prize and sell your home for a fair price. Most homes that do not sell within the current absorption rate are likely to be over prized.
So go ahead, Phoenix is a beautiful valley to treat you to many breathtaking views of the sunsets. Grab your share of home!
Other Articles
