That upswing refers to the fact that the Phoenix and surrounding Maricopa County market took significant strides towards a ‘sustained recovery,’ years after the housing market crash affected the rest of the country. Those strides took place throughout most of the markets associated with real estate in the area, notably including the single-family property and luxury property markets.
‘Signs of recovery’
According to resources at the time, the Phoenix housing market had experienced signs of recovery and stability, once the value of single-family homes started rising. From the end of 2012, the value of a standard single-family home in the area rose ‘more than 25 percent,’ accounting for the $157,000 price average, as reported by an Arizona State University housing report at the time.
From that point, the housing market was said to harbor investors ‘looking for rentable properties.’ First time home buyers, on the other hand, weren’t exactly lucky, as they suddenly found themselves unable to ‘keep up’ with the rising costs.
‘The cost of luxury’
Those that could have kept up with the costs were probably looking at the luxury housing available in Phoenix at the time. What was left at the time, at least. There were decidedly less properties valued over $750,000 on the market in 2013, which experts pretty much attributed to the luxury market’s relatively ‘slow reaction’ to ongoing market trends.
An interesting trend to note was that affordable properties within the Valley actually increased in value, potentially turning otherwise affordable properties into near-luxury buys.
‘The market’s downswing’
Foreclosures in 2013 did see a downswing, though they didn’t exactly return to ‘normal levels,’ as reported by market experts. That downswing accounted for a 90 percent decrease, which was considered ‘pretty close to normal’ by experts.
While investors in Maricopa County properties did play a role in Phoenix (and the surrounding area’s) market recovery, they ultimately didn’t influence most of the changes. That particular trend slowed, since their rental rates ‘don’t vary as much as property prices vary,’ keeping these investor-landlords from making much from the deal.
‘A continuing improvement’
What did improve in 2013 was the market itself, as a whole, particularly when referring to how the market’s average sale price stabilized throughout most of the year. The historically low interest rates, at the time, were also expected to help promote ‘new home ownership’ throughout the year.
Both of those factors were said to help both first time buyers and current homeowners find properties to buy, especially market recovery ‘hinges’ on the buying power of those individuals.
Luxury real estate was also said to have a positive impact on the market, as experts indicated that those who purchased luxury properties helped keep that marketplace relatively stable. Even if you don’t own luxury real estate, a home warranty is probably right for you. Click here if you’re from the 602.
While the ‘cost barrier’ between both luxury and single family homes was still somewhat in effect, experts did mention that many prices were ‘close to 2003 levels on the market’ during the year. That trend is expected to continue throughout the rest of 2014, barring any circumstances that might change the market’s conditions.