Rising rents, new job opportunities and low mortgage rates have change the perspective of buyers to urgent. They are getting off the fence and are acting before prices get higher, which would help boost demand even further. Home sales have been steadly growing for the past two years and is expected to double every year for the next five years.
For me personally I would rather see more owner occupants buying homes but unfortunately during the recovery we have had a lot of investors buying left and right. This worries me because they did the same thing prior to the fall of the housing market and were the first to bail which made the problem worse. Same parts of town are increasing quickly and in my opinion will continue to rise through out the summer. Ideally I would love to see these numbers grow gradually over a longer period of time. Other factors are the general factors that affect the real estate market through out the U.S. aka a healthy private sector with a good number of jobs available, lower interest rates and consumer confidence in the future of the US economy.
The prospect of economic rebound has boosted consumers' confidence. People are now optimistic and are ready to purchase homes which they were skeptical to do months ago thinking the housing market would continue to drop. Now that the prices of homes are going up, many buyers are now in the market willing and ready to buy before the prices climb too high. Another factor is demand and supply. Fewer inventories of homes have prompted the building of new homes, which is a sign of housing recovery. Hopefully the trend continues.
Grace Adewumi http://www.house2buyorsell.com
There are many reasons a few are pricing corrections came faster then in other markets. Desirable location for investors. Several Canadians and overseas investors bought up a lot of the inventory. Several people that had wanted to purchase but couldn't afford now could with the Lowe prices. Great interest rates. These are just a few but as inventories remain low it's supply and demand so all indications are prices are on the way up.
Geography! We've been thru a terrible market and markets are cyclical, but people have always wanted to live here and that will never change unless there's no longer any A/C. Thank goodness we can't change our location.
I would add that reduction in foreclosures along with lower inventory, low interest rates and the news media getting up to speed on what to report that got buyers off the fence too.
As the job market improves, more people has the means to qualify for a mortgage and buy a home. Also I am meeting a number of buyers that had their home foreclosed 3 or 4 years ago and they are ready to buy again.
In my opinion, the market is getting excited by the low interest rates, the cash cow of investments to rental rates, low prices and add the recent low inventory (supply) to the high demand. Now to rein in the market monster before it gets to crazy again...
So in my opinion the biggest factors affecting the Phoenix housing market recovery are the following:
Shortage of inventory has played a huge part in the recovery. Over the last few years investors have swarmed the market buying up as many properties as they could and renting them out. People that don't need to sell are holding onto their homes as they feel the prices have been moving up so why not wait to sell and see if they go up more. There are less foreclosures so less homes being put out into the market. These factors along with the low interest rates have made it difficult for those looking to buy to find many homes to choose from. It all goes back to supply and demand. I had a home on the market for 120 days and all of a sudden I got 2 offers in one week and people still calling on it. Buyers are anxious to purchase before prices go up more and the low supply allows the sellers to get more than they could just 4-6 months ago.
We've seen this coming for the last 6-8 months. The public didn't think so and they kept thinking prices were going to go down again so many put their buying on hold. Now they seem to be convinced the bottom has passed and they better get out there and buy.
Hopefully the market will settle into a normal market and it will make our jobs a lot easier.