Supply, Foreclosures Down
Demand for homes on the rise
There’s quite the demand for homes between $50,000 and $150,000 in the Greater Phoenix area according to the Cromford Report this market “continues to be particularly strong as investors, many from out of state, seize the profitable opportunity of becoming landlords. Demand from owner occupiers remains relatively weak due to the difficult financing climate,” stated the report.
Foreclosures continue to fall as short sales are gaining momentum and becoming an important part of the housing market’s dynamics. “Lenders are receiving far fewer homes into REO inventory as a larger percentage of the trustee sales result in a sale to a third party. The market below $200,000 is now highly supply constrained,” said the report.
The report also highlighted that an upward trend has developed related to the price of homes below $200,000, sold by lenders. “Because of the high sales volumes at the low end, price averages are very likely to push higher which may have a positive effect on sentiment,” said the report.
Foreclosures down by 50%
The level of foreclosures has dropped by 50% from 2009 levels and fewer homes are pending foreclosure since the middle of 2008. “More of these are finding solutions other than the trustee sale and the completed foreclosure counts are now falling fast,” the report said.
If you’re interested in complementing your investment portfolio with real assets, investing in real estate is a good way to maximize your returns and minimize your risk. Capstone Real Estate’s offerings are RRSP and TFSA eligible. For more information on our Saguaro Series 2 investment opportunities, request an information package by clicking here.
Disclaimer: All real estate investments are described in greater detail in the Offering Memorandum. Projected returns and the timing thereof involve substantial unknown risks and uncertainties, certain of which are beyond the fund’s control. The fund’s actual results performance and achievements could differ materially from those expressed here. Please refer to Saguaro Capital Fund Series 2 Offering Memorandum for more information and seek advice prior to investing.