Justin Billingsley discusses the Arizona Real Estate market with TND West.
Is the Arizona Real Estate market back to normal after the disastrous crash of 2008. I depends on what your involvement in The market is. Take a case study of a home owner who owns a Scottsdale Arizona home valued in 2007 at 600k. That home is now worth $450K. The same person owns an investment home bought in 2007 for $230K it is now worth $250. The residential home was worth $200K at one point during the recession and the investment home $90K. If you look at those numbers the market has greatly improved from the peak of the recession. From this property owners perspective we are still well away from normal The home is still upside down and the investment property which has had over $30K of improvements has increased in value by just $20K in 10 years so still upside down from a pure investment perspective.
The question to be answered is “Was the market normal in 2005/2007” Of course not the prices were grossly over inflated the bubble was huge and when it burst it exploded with dire consequences. Arizona could not stop building and many homes were vacant. The market in The Arizona housing market was one of the hardest hit during the housing crisis so we had a long haul back. Current forecasts suggest the housing market will increase at a more modest but much more normal 3.5% over the next year. “Normal” to this home owner/investor has not returned and there is a lot of trepidation that sub prime mortgages will become more prevalent due to de-regulation. I asked this home owner what they were going to do and the answer was very telling, as soon as there is equity in the homes I am selling them. Investing in Real Estate in the current market is certainly worth looking at but if you invested in the Arizona Real Estate market either as a home owner or a pure investment in 2005/2006/2007 “normal” is still a long way off.
For more information on the Arizona housing market go to https://www.trulia.com/real_estate/Phoenix-Arizona/market-trends/ or https://www.zillow.com/az/home-values/
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