The Shrinking Inventory of Phoenix's Real Estate Market
April 20, 2012
The Phoenix Real Estate market has shown signs of steady improvement over the past few months, which has caused Phoenix’s housing inventory to shrink. In 2008, there were 58,000 homes on the market, which at average sale rates would be enough for a nineteen-month supply. Currently, there are only 16,000 homes on the market not under contract, which represent just a two-month supply.
The market is tightening, and is now considered to be a buyer’s market. Owners have been receiving multiple offers on their homes, often on the same day their houses are put on the market, and the majority are being sold for significantly higher than the listing price.
This shrinking of inventory is just further evidence that the Arizona real estate market is entering recovery, but experts in Phoenix real estate investments warn that full recovery is also dependent on the willingness of banks to lend money to potential homeowners. Currently, 40% of homes sold are being purchased with cash. However, it is important to note that many local and regional lending companies have been stepping in to offer their assistance in the place of national banks.
Phoenix is one of three markets that saw a year-to-year increase in housing prices from January 2011 to January 2012. The rising prices and shrinking inventory have experts stating that this will have very beneficial effects on the Phoenix economy, and Arizona real estate investment opportunities. Anyone interested in investing in Phoenix should be investing as soon as possible, or they will miss out on participating in these RRSP eligible investment opportunities.
About Capstone Real Estate For the past 40 years, Capstone Real Estate has boasted the expertise and diligence required to properly select and comprehensively manage various real estate investment projects. Capstone is able to generate maximum returns from their investments by purchasing under-valued real estate and making it more accessible to potential investors. Our knowledge in real estate acquisition and finance, combined with founders who together have over 40 years of real estate experience have shaped a track record that speaks for itself. Reliability, leadership, and knowledge are a guarantee when you choose to invest with Capstone Real Estate.