Investors tend to move towards any location where they see low sales prices, but a decreasing number of inventory, and rising prices with high demand. Phoenix has always been an area of growth, which means new housing will be in demand (although that was postponed for a couple of years during the housing bubble from 2008-2011). Basically investors feel they can make money in the Phoenix Real Estate market.
I personally don't think this trend will last very long, as prices have significantly increased over the last year (up 43% in some areas). I don't know how it can continue at this rate, as this is exactly what happened in 2005-2006, just before the market crashed.
We will just have to wait and see how long investors will continue to flip homes, as there are fewer and fewer foreclosures and bank owned properties available to turn for a large profit.
Seriously, Phoenix is a great place to live. Gilbert and Chandler are in the top 50 places to live from Money Magazine for smaller suburban cities.
The population is growing and investors see the trends.
Call with any questions you may have.
Jeffrey Masich, Realtor, GRI, MBA
Arizona homes and land for purchase or sale
Phoenix recently named as fastest-growing housing market nationwide
Arizona home-price jump surpasses national surge
Real estate prices are low, prices are increasing, strong demand and good employment numbers. Please view our blog to read our most recent real estate market report: http://positionrealty.com/blog/
Sean Heideman, Broker
Phoenix is not the only place experiencing this, though. It's just the one you're aware of because you live here. Florida is another state that has seen a surge in investor buyers.