Phoenix Housing Crisis Turning Corner

Feb. 27, 2012 - PRLog -- Suffering from a bad economy for years, the Phoenix real estate industry is showing indications of recovering from one of the worst housing crisis it has suffered for a long time. Phoenix properties sales are picking up in most part, although the prices of Phoenix second homes are still in decline despite record low borrower’s rates in mortgages.

The country’s economy is still battling back from the blows of the worst housing crisis since the Great Depression. But the Phoenix real estate investors may now be close to turning a corner despite a slip in home values. It’s now a good time to see a Phoenix realtor if you are interested in the Phoenix real estate business.

In Phoenix, home sales have been observed to perk up and stabilize, while builders pull a rising share of building permits for new homes. As foreclosures’ bloated inventory picks over, the housing market’s bottom is most likely to be seen soon in Phoenix.

High-End Market

Phoenix and the Scottsdale enjoy a relatively health high-end market. Scottsdale and Phoenix second homes buyer are now developing a huge vacation market, something that the region hasn’t seen in years. But while the prospects are good, it is still premature to say that it’s a rosy picture for Phoenix, which is predicted to sustain losses in housing value of 7.1 percent this year.  The following is a list of cities and their corresponding forecast:  Phoenix (7.1 percent), Scottsdale (6.2 percent), Tucson (5.8 percent), Yuma  (7.3 percent), Flagstaff (5.8 percent)

In Scottsdale, Phoenix second homes investors sitting on empty properties praying for profits are getting to a rare sight. The Scottsdale market is among the most affluent areas in the State of Arizona. Here, wealthy individuals, professional athletes, celebrities, former Wall Street players spend their retirement. But again, the outlook is pretty but there are still a lot of issues to be resolved before a full stabilization can be felt.

Tucson’s housing market has been slowed down progressively by a sales slump, and the prices of homes looked like they were posing a comeback. But tight conditions on mortgage lending and high rate of unemployment pull down the region. Tucson is experiencing foreclosures and other problematic properties. In Yuma, two military bases are hurting and helping the market at the same time. The ongoing housing crisis is impacted by military personnel transferring assignments every two years. In mountain-high Flagstaff, the market is suffering just as much as the market for many second homes. This is mainly due to the city’s limited size.  

The Picture Looks Good Overall

Economists are saying the housing statistics indicates that the year 2012 will see the housing industry beginning to turn the corner. They note that the housing industry has prolonged business cycles.  Recessions in regional housing usually take three to five years before finding their bottom and the country’s housing recession has been behaving in the same pattern, bouncing along a bottom these past couple of years. The affordability of housing has been rising in a dramatic way because of the combination of rock-bottom rates of mortgages and deflation of home price, economists say. They foresee the year to be the time for prices to start growing once more, with the affordability in housing stopping further declines.

This year, households will pay off their debts and enjoy an easier access to credit. Some households will even add Home Equity Lines Of Credit in this year’s third quarter, which is a first since the start of the financial crisis. All indications point out to an increase in consumer confidence in the present economic situation. In the latter part of last year, many housing statistics moved sideways, but economists saw positives in the figures. They noted that sales in existing homes and single-family properties are increasing, confidence among homebuilders has improved while affordability has reached an all-time high.
Maureen Karpinski
Find your Phoenix Arizona Property at http://www.cactuscountryproperty.com/city/phoenix.htm
Posted by Cactus Country Arizona Homes & Properties http://www.cactuscountryproperty.com

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Maureen has been in the real estate industry for 39 years as an agent and broker/owner of her own company. She prides herself in successful negotiation for both buyer and sellers and in building successful portfolios for investors. She is proud of her Agent friendly office environment that is her own creation and the calibre of real estate agents she has working for her. Maureen goes beyond fulfilling the needs of the real estate client and entrenches herself in the needs of Children in Need