Good News! We are seeing a bit of a shift in the Phoenix area real estate market due to the influx of investors. We are seeing many investors purchasing properties through short sales, auctions and foreclosures and remodeling them. Consequently, we are seeing a positive effect on the conditions of the property and the average pricing in these neighborhoods.
Currently we are experiencing a low volume of homes for sale in the Phoenix market. Because our prices had plummeted, many investors and second home buyers have entered the market and are attemping to purchase properties. There is a lot of competition amongst buyers and most properties receive multiple offers to purchase. We are seeing investors now willing to pay market value for homes. Consequently, it is very difficult now for buyers obtaining FHA loans and buyers asking for closing cost assistance to get under contract on a home. The market value cash buyer is now king. In many cases, it is the buyer who is willing to pay OVER list price that ends up owning the home.
As long as our pricing continues to increase incrementally and sanely, our real estate market will continue to mend itself. Ironically,investors helped drive up the market to insane values in 2008 and 2009 and investors may be the group that corrects our current real estate market. Let's roll out the red carpet and welcome the influx of money to our state. For many families, the investors are providing stable homes. Let's welcome the investors with open arms.
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