Land in high-demand in Phoenix turnaround market
The demand for real estate in Phoenix, AZ, continued in July, but experts believe the demand could level off within the next few months if builders run short on the number of lots available to build new homes. At the beginning of the year, home building permits started steadily rising and have yet to stop.
In the second quarter of this year, home prices in Phoenix rose more than most other markets in the country. With the job market improving, homebuyers are looking past homes that were foreclosed or on short-sales to pay $10,000 to $25,000 more for a new property. These improvements have created a turnaround market, welcomed in an area that has been underwater since the housing burst.
"A turnaround market is where all the key measures are in better balance than they were four or five years ago," Julie Reynolds, real estate expert, told the Chicago Tribune.
Affordable lots are in high demand, and home builders don’t have as many options as they did in the beginning of the year. In the Phoenix metro area, there are 23,000 lots planned and ready for new homes to be built; however, many of these lots are in up-and-coming areas.