The single-family home market in Phoenix has experienced a spike in sales over the past six months, according to a report.
Land developers, homebuilders and other real estate industry stakeholders are positive about the future, anticipating more than 50 percent growth in 2012 permits, Keefe, Bruyette and Woods reports. The firm found that resale inventory has dropped as a result of a sustained surge in sales that began in November.
Additionally, the percentage of home sales that were real estate-owned or short sales fell by about 25 percent year-over-year, while foreclosure inventory was halved in the same period. Much of that inventory may be purchased by investors, who are displaying strong interest in converting the properties to rental housing. This is likely to mean additional competition for the rental property management firms and apartment owners in the area.
The extent of sales activity may also signal a returning interest in homeownership in the area, although how much of one remains to be seen. At the same time, home prices increased by 20 percent or more year-over-year in March. As the cost of purchasing a home increases, renting will become more attractive to some. This may be more noticeable given the rent growth and home price drops that have taken place post-recession.