The city of Phoenix is in a unique spot as it looks to return to good times in the housing market arena.
For one, home sales are up. Even if there was a push near the end of the month because of the sunset of the federal tax credit, home sales are showing some pretty good signs that people are ready to either become first time homeowners or are building new homes to move into.
For another, home prices are still at low levels, which means there are a great number of good deals. For the first time in over a year, most pre-existing homes purchased were NOT foreclosed homes, which means that those looking to sell their homes might have a better shot at it, and those looking to purchase those homes can still get them for a pretty good price. Also, though there are some new homes being built, the overwhelming majority of homes being purchased are pre-existing homes.
It’s interesting trying to figure out why home buyers aren’t looking more vigorously at foreclosed homes that are for sale. The overwhelming thought is that many buyers are wary because of many news stories that indicated those leaving these homes didn’t leave them in mint conditions as they locked the doors on their dreams, and no one wants to put a lot of money into fixing up a property if they don’t have to. Of course, this means that these foreclosed homes can be purchased at a great value, as the median price for available foreclosed homes in Phoenix is only around $106,000.
Is it a buyer’s market; definitely!
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Mitch writes on real estate, finance, and many other things.