Single Family Home Pricing Increasing Across US
…as the US economy remains at a snails pace, creeping slowly upward. There seems to be a lot of hope on the horizon within the Phoenix area. Gilbert, Chandler, Mesa and Queen Creek are seeing employment hope as new corporations start to expand in the area and health providers like Banner Health start building new medical facilities including cancer treatment centers.
From the Commercial Realtors I know, I’ve been told that they are seeing an increase in Commercial Real Estate Sales across the valley, although I still see too many vacant retail spaces throughout Phoenix. That makes me wonder if they are purchasing these buildings as a forecast of growth while the prices are low.
Much of our Residential Market price increases for affordable housing in the 75-150k range was driven up by hedge fund investors paying cash above market value only to either flip those homes or use them as rental hold back properties on speculation prices would rise. So far what they expected seems to be true, with an average 25% increase in values of homes in that range just last year alone.
The real key factor that will effect housing will be financing. Lenders are tight as a lid on an old picke jar when it comes to lending money to someone looking at their first home. They all want that perfect buyer with impecible credit and job stability. Appraisals are again another issue. I have had many appraisals come in above value or fall short of value and this directly affects a buyers ability to purchase when they come in low, particularly when the seller is expected to contribute towards the buyers closing costs.
There are always challenges in this industry and as long as employment remains at a stand still we will still be in a quandary wondering when the “real” recovery will occour.
In the mean time, I’m still selling property to those who are looking for that final home they can retire in to get out of the rain, snow, floods and hurricanes the US is experiencing. So far, Arizona has not had to deal with any of the nonsense and that’s just the way we like it.
Guess I’ll go ride my Harley for a while…