Home Buying in Phoenix>Question Details

Bianca Benne…, Real Estate Pro in Glendale, AZ

I wonder why all the investors are coming in Phoenix to invest in the real estate market?

Asked by Bianca Bennett, Glendale, AZ Wed May 15, 2013

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Well, the prices were very low after the market fell so it was a good time for them to buy. If you think about it, they could pick up a house for under $100,000 and in some cases even around $50,000 or less and put it up for rent for about $850 to $1100 a month. That is a great return on their investment. When they are ready they will turn around and sell. Right now prices are going up fast because there is very little inventory on the market. Some investors will choose to hold on to their investments longer and some may choose to put them on the market... Hopefully most of that will die down soon because of limited inventory but it is not the case yet...
1 vote Thank Flag Link Wed May 15, 2013
Phoenix is an awesome place where many people consider it to be a final destination. You can not go wrong with investing here. Property values in destination areas hold their value in down times and increase rapidly in good times. Life is good here in the Valley of the Sun and Investors know this.
AJ Stewart
1 vote Thank Flag Link Wed May 15, 2013
Bianca,

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.
0 votes Thank Flag Link Tue May 21, 2013
REITS realized PHX had dropped the most in values so, the speculators are back in full swing.
That does NOT mean that they are getting good deals and when they need to dump, they will take a bath!!
0 votes Thank Flag Link Sat May 18, 2013
Maybe the watch Property Wars on TV?

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
HomeSmart
Arizona homes and land for purchase or sale
http://ArizonaHomesLand.com
JeffMasich@ArizonaHomesLand.com
480-556-0940
0 votes Thank Flag Link Thu May 16, 2013
Interest rates are low and prices are affordable!
0 votes Thank Flag Link Thu May 16, 2013
All the previous answers are correct. The Phoenix market saw the biggest dips in home prices, and is now one of the fastest growing markets (the top for the past few months actually) in the U.S. It's pretty easy for most to see Phoenix is going through a market correction and the investors are looking to capitalize with fast returns.

Phoenix recently named as fastest-growing housing market nationwide
http://capwestmortgage.com/news/Housing-Market-News/Phoenix-…

Arizona home-price jump surpasses national surge
http://www.azcentral.com/business/realestate/free/20130507ar…
0 votes Thank Flag Link Thu May 16, 2013
Bianca,

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
Position Realty
Office: 480-213-5251
Fax: 866-232-2256
Web: http://www.PositionRealty.com
0 votes Thank Flag Link Thu May 16, 2013
Prices are still low. Arizona is a great state to own property. We do not have any national disasters like earth quakes, floods, tornadoes, tsunami's, and so much more. The main reason is the low acquisition costs for a property. Best wishes, Tiffany
0 votes Thank Flag Link Thu May 16, 2013
Investors are driven by one thing: money. So they go where (a) prices to purchase are low and (b) demand for rentals is high and (c) there is good potential for equity gain or increase in value of the property.

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.
0 votes Thank Flag Link Thu May 16, 2013
The investor rush to Phoenix has been lessening. Prices are rising, bank owned (foreclosed) homes and short sales are harder to find, and the median price has been rising from the bottom up (elminating many of the lowest price, easy flip and sell properties).
0 votes Thank Flag Link Thu May 16, 2013
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