The US housing crisis that begun early in 2008 affected many homeowners across most major cities and states. Among these, the state of Arizona worse among the worst affected and drew the brunt of the crisis. In major cities such as Phoenix, many homes have been foreclosed by the banks and values of homes have sunk to historic levels. But now, according top observers and players in the industry, the home prices have hit rock bottom and projections are that prices will start to pick again with 2012 approaching.
Arizona is a fairly decent state with many continental and international visitors making forays into the state annually. Most visitors to the state wish to holiday here and enjoy the warm sunny climate as well as the many outdoor activities offered by the state. There are plenty of great locations for mountain climbing, hiking, picnicking, camping fishing and basically enjoying the outdoors. This particular fact about the state provides investors and home buyers with good reason to be optimistic.
Arizona home prices are so low that the only way now is up. Prices are expected to go up within the New Year as the US economy shows signs of recovery. Banks may begin to short sales as they hold on to plenty of properties. This means that bankers are allowing home owners to sell their homes for less than what they owe. This is already happening in Phoenix. Interestingly though, short selling in Phoenix usually results in house prices going up. Basically this is because short selling tends to fetch a better market price than the foreclosed homes sold by banks.
Numerous reports have indicated large numbers of Canadian investors purchasing property in Phoenix. Canadian investors are taking advantage of the current low market prices in the housing sector in Arizona and have been buying property for as low as $50,000. This speculative purchase of property is based on the notion that prices will soon go up and that there will be renters willing to pay about $900 – $1200 per month for the properties. This, to Canadians, is a pretty good return on their investment.
There are other investors, mostly local companies that are buying up properties at historic low house prices and fixing them up with the hope of reselling them later at much higher prices. Banks have also ceased foreclosing properties as this tends to reduce the prices of other investments in the area and instead tends to short selling. While short selling implies that a homeowner loses their home, it means the home will fetch a better price than if it were foreclosed. It will also hurt the homeowner’s credit ratings much less than a foreclosure would.
The short selling is expected to see home prices go up within the coming months. And with an expected rise in tenants, commercial activity and bargain hunting investors, the only way up for homes in this state is up.
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