Arizona – Will 2013 Bring Statewide Housing Prosperity?
Arizona is normally near the top of the charts when it comes to state economies and employment. However, that wasn’t the case after the housing bubble burst. During the Great Recession, tourism dropped and unemployment soared. There were more underwater mortgages in Arizona than in most other parts of the country.
Even by 2011 – after economists had declared the recession officially over – economic experts in Arizona said the effects were far from gone. Most were in agreement that the effects would linger until the housing market turned around.
That began to happen in 2012.
In fact, by the time 2012 came to a close, homes for sale in Arizona were selling for 20% more than what they had at the beginning of the year. Oh sure, prices in the Grand Canyon State had plummeted to some of the lowest in the country, but no state saw increases like this.
As a result, investors couldn’t help but take notice. After all, the prices started off so low here that even a 20% increase is still very affordable. And, in order to skip the hassle of red tape, many investors decided to do all-cash transactions.
All of that money flowing into Arizona’s housing market served as a jump-start for other things – like restaurants, stores, and other businesses. So, even though most of the investors weren’t locally-based, they were working wonders for the local economy. As a result, it gave many local residents a chance to buy homes of their own.
And just like that the housing gears finally started to turn!
So, what do realtors in Arizona expect to see in 2013?
In Phoenix – Arizona’s biggest city and, thus, the city that can pave the way for true recovery – the name of the game is stability. By the end of 2012, home prices were up 25%. Investors are in full force here, but there are also a number of first-time homebuyers, too. Between the two groups, there is plenty of demand for the homes for sale in Phoenix!
What about the rental market?
The prices for apartments for rent in the area could soon be going up, since investors have been snapping up properties and turning them into vacation rentals.
If you’re looking to rent in Phoenix full-time, the average apartment will cost you about $840 per month. Keep in mind, though, that rental prices here spent all of 2012 steadily going up – and are expected to keep doing so.
Realtors in Arizona say that Phoenix is definitely the bright spot of the state. Now, they’re waiting for Phoenix’s prosperity to extend to the rest of the Grand Canyon State!