Any first time home buyer Arizona would like to know the current property value within the state. Its real estate market took a winding road since the mid-2000s until recently.
The Market Crash
The economic bubble in 2006 spared no local real estate market. Known as the United States housing bubble, this economic changes resulted to highly competitive housing prices in the early 2006. However, the peaked property prices didn’t last for long as it declined within the same year up to 2007. In 2008, reports claim that the property value drop in that year was the lowest in the history. This continued until 2012, where the market experienced another level of low. Many people reported that this economic bubble is probably the precursor of recession.
Arizona experienced the same as its real estate market reported significantly low property values than the earlier years. It resulted to a lot of investors within and outside the United States to take advantage of its geographical location and fair climate.
Real Estate Market is Back Up
That spell of bad economic luck is over as the Arizona real estate market is back up and is re-establishing its normal market conditions. Reports claimed that the market began to normalize in 2013, resulting to better values and now more competitive than other states. A report stated that property values in Phoenix, the state’s capital city, have been slowly increasing compared to other Western real estate industries. The comparison between home price index in May 2014 and May 2015 showed a difference of 3.8 percent, which is an gain for this year’s market.
Although the rate is slower, real estate experts claimed that it is an advantage compared to other industries. Moreover, its improved percent gain is way better than the real estate market in the East Coast and the Midwest. Nationwide percent gain study showed that Arizona gained more than New York, Chicago, and Cleveland.
Considering its current real estate industry, experts can confidently say that it’s the best time to invest in a property in the state. This promoted better mortgage rates Arizona that suits every buyer’s requirement.
The Center of Affordable Housing
Despite its strengthening real estate market, Arizona remains as a mecca for property buyers for its generally affordable housing offers. Some buyers, particularly those from Canada, found Arizona as the best state to get a house at a better price. They also appreciate other perks offered to non-Arizonian investors in terms of taxes and others.
New Building Permits as Sign of Real Estate Competitiveness
One of the main contributors to Arizona’s booming real estate market is its new permits. According to a report, the market obtained significant gains in June as new construction permits have been handed out to contractors. Sales volumes also increased, which is a good sign of its market standing.
Overall, the real estate market in Arizona may have experienced some loses in the past, but is now becoming a booming industry within the state. With lenders and mortgage brokers Phoenix and those in other cities, property investors can get their dream houses at a much better price.