If you are looking for a good real estate investment, now is a good time to purchase foreclosed homes in Phoenix. Due to the recent rash of foreclosures, many Valley communities have seen a drop in home prices causing an oversupply of homes well within the affordable range, a great opportunity for investors looking to expand on rental property options for families relocating to the area in response to new job prospects.
Over the last several decades, there has been a population shift among the largest cities in the nation, especially those that border Mexico. The fifth largest city in the country, with a population of 1.5 million as of 2006, is Phoenix. The cities continues to grow. Between 2005 and 2006, the population grew by 43,000 people. The state is a desert state, and most people choose to settle near the largest city. The area around Phoenix actually accounts for more than 75% of All of Arizona’s residential homes. Phoenix is located in Maricopa County, which saw an increase of 70% in foreclosure filings this last August.
Certain areas have suffered from more foreclosures than others, however all of the areas affected are known for affordable home prices in the Phoenix area Valley community. Some areas, where home owners purchased with ARM or Adjustable Rate Mortgages were especially vulnerable to foreclosures, such as East Valley, Mesa, West Phoenix and Maryvale. It is expected that further clusters of home foreclosures will be experienced within the next six months or so, causing prices in those areas to plummet even further.
So this begs the question to be asked: is now a good time to buy in Phoenix? It is hard to know when the time is right to jump into a cold market such as this, but sometimes it can be more costly to wait too long to determine whether prices are rebounding yet or not. Unemployment levels in the Phoenix area remain low, and Phoenix is high in the recent rankings for job growth in the private sector, so the outlook and demand for affordable rental homes is still very strong. Another thing to consider are the families that have lost their homes to foreclosure who will be looking to stay in the area and rent a home in the same community.
There are many reasonably priced foreclosures that act as rental property, and prospective buyers who decide to postpone buying for the winter, will find that they will lose income as a result of this decision. This fall, home buyers will have the upper hand when it comes to home price negotiation in Phoenix.
Learn more about mesa homes for sale. Stop by Logan Oulman’s site where you can find out all about mesa homes for sale and what it can do for you.
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