Phoenix is hottest market in US
According to a the recent Standard & Poor's/Case-Shiller home price index released on August 28, Phoenix was rated as the hottest housing market, rising 13.9 percent.
The mixture of declining foreclosure numbers, investor demand and a low supply of homes have combine to make Phoenix the best looking market in the country. It is common in most markets for the price of homes to spike once the stock of foreclosed houses has decreased. The increasing demand of property has created bidding wars between buyers, which sometimes ends if one potential buyer is purchasing with cash.
Real estate in Phoenix is in more demand because the population is growing, and the city’s economy is much more diverse than others that were hit hard by the housing burst, like Las Vegas, which primarily relies on tourism to boost its economic growth. Phoenix also has more opportunity for growth than other cities that are further developed, sparking interest in foreign and domestic investment in properties and land, driving the economy up as well.
"The best news on the housing front is that prices have turned," Patrick Newport, U.S. economist at IHS Global Insight told The Associated Press.