Recent studies indicate home values, buyer desire both on the rise
Scottsdale, AZ -- (SBWIRE) -- 08/01/2013 -- Home values in the Valley of the Sun are up 30 percent since April 2012, according to the latest housing report from Arizona State University. While the housing market recovers, in concert with the local economy, home values are still 20 percent below their peak in 2006.
Mike Orr, director of the Center for Real Estate Theory and Practice at ASU’s W.P. Carey School of Business says the housing market is healthy and getting healthier.
"Given the balance between supply and population growth in Phoenix, home prices are unlikely to fall below today’s level,” he said. “More likely, they will continue to climb for a long time, though at a more gentle pace."
For current renters and other prospective buyers interested in Valley real estate including the Phoenix real estate market, Scottsdale, Paradise Valley and Fountain Hills, this is likely the optimal time to look for a new home.
According to real estate expert Echo Farrell, owner and broker of Farrell Fine Homes, home buyers and investors should take advantage of the Valley home market sooner rather than later.
"The uncertainty that has hovered over the Phoenix/Scottsdale economy is definitely lifting,” she said. “Our once-sizzling real estate market is heating up again, but this time at a sustainable pace. Combine that with interest rates that are still at historic lows, and those who buy now are getting in at a great time."
Another recent study, this one by mortgage giant Fannie May, indicates 9 out of 10 renters nationwide are interested in soon becoming homeowners. Farrell indicates this number could be even higher in the Phoenix area.
"This is a desirable and undervalued market," she shared. "I have clients who move here from California or Canada or back east, and they are always amazed at how much home they can get for a their money here. Not just large homes, but beautiful homes in desirable neighborhoods."
That unique affordability may be a short-term phenomenon as values continue to rise and the region’s historic growth re-accelerates.
Farrell stresses that the timing may be especially fortuitous for first-time homebuyers.
"For those renters wanting to settle down and invest in a home, getting pre-approved for a loan is an important first step," she said. "An FHA loan is a great way to get your foot in the door. Even if you don’t have a large down payment or are working through some credit issues, the Valley of the Sun still has some appealing homes at great prices."
When asked why the Phoenix and Scottsdale real estate market is so appealing, Farrell replies with a familiar refrain.
"It’s the lifestyle here," she said. "sunshine, shopping, swimming pools, outdoor activities – it can be like living in a resort year-around. Who wouldn’t want to be a part of that?"