More homebuyers intrigued with Phoenix-area market
After the housing bubble burst halted new developments and home sales, things are finally starting to look up in several hard-hit areas like Phoenix. Homes for sale in Phoenix are getting snatched up quickly from homebuyers eager to take advantage of prices that haven’t reached pre-recession levels and low mortgage interest rates.
Home interest booming
During the past year, more homebuyers have shown high demand for new homes, especially in areas like Surprise, according to The Arizona Republic. The higher number of homes being sold has helped spark new developments in the area, which has created more jobs and helped boost the economy overall. Experts believe that this trend is going to continue for the rest of the year and hopefully into next year.
Some homebuyers are interested in new houses because investors are snatching up properties across the city. However, Phoenix home prices are increasing, according to the Phoenix Business Journal. The average home value of a property in the Valley is $149,400 during the third quarter of this year. Home prices have jumped 5.9 percent over the previous quarter and 20.4 percent year-over-year. Experts believe that despite these increases, people are going to continue to show interest in the market. It is expected for homes to rise another 8.5 percent by the third quarter of next year.
More construction across the Valley
In August 2012, home building increased by 400 percent year-over-year. Builders pulled 55 permits during the month, which was an 8 percent decrease over July’s 60 permits, according to The Republic. These new permits and increase of construction is a good sign for the entire metro area, showing there is more confidence in the economy.
Many developers have been trying to pace themselves to preserve the current inventory and allow for time to prepare land for new developments. Over the past few years, builders have been skeptical of the health of the housing market, but have considerably picked up the pace after noticing an obvious interest in a bigger supply.
“Earlier this year, sales just picked up and we couldn’t turn on our land-development machine to give developed lots in time,” Pierrette Tierne said. “We didn’t want to sell through our inventory and have a huge gap, so we developed land at a pace where there would be inventory still left to sell.”