Award Realty News, Homes for Sale Arizona, arizona mls
Homes for Sale Arizona
August 4, 2009 by Denny Elmes · Leave a Comment
Creative Commons License photo credit: Boy27wonder
Homes For Sale Arizona
I found it interesting that as new nationwide figures were released yesterday showing an 11% increase in new home sales, the nation is nearing another huge round of foreclosures. We are seeing continued construction of Arizona new homes, while the Case Shiller Index showed Phoenix with a year-over-year price decrease of 34% in May, 2009.
Most leading indicators seem to show a continued decrease in prices throughout the next 12-18 months, yet builders continue to build homes to add to the inventory. Rental homes in Arizona are in greater demand as prospective home buyers opt to rent until they consider the time is right to purchase. So what is going on?
Many economists and building industry experts believe that there may soon be a housing shortage, due to investors and first time homebuyers absorbing the lower priced inventory at a faster rate than new construction provides.
As prices continue to drop, the sale-to-rent ratio becomes more attractive to investors. As mortgage payments on homes for sale in Arizona become attractive compared to monthly rental rates on rental homes in Arizona, investors will buy for the attractive return on investment.
Believe it or not, Arizona new homes and existing homes could be in short supply in the not-too-distant future.
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