The Phoenix real estate market has been very hot for several years. It’s been an investor’s dream. So, is the bubble about to burst? Should investors cash out now?
The Phoenix real estate market is sizzling hot right now and it’s not solely due the summer heat. In the last decade, there has been a huge influx of people moving into the area. More people means greater demand for housing. Naturally, real estate investors are ecstatic!
The Phoenix real estate market is growing in the sale of both single-family homes and condos. In the first three months of 2006, the median price for a Phoenix home for sale was $268,000 and for condos the median price was $180,000. The Phoenix real estate market has led the nation in growth over the last year and these figures are expected to go even higher at least through this year.
This is great news for investors in Phoenix real estate because they can just about have their pick among the type of Phoenix real estate in which they would like to invest. The condominium market tends to be a bit riskier for investing because there are fewer condo sales than there are single-family home sales. On the other hand, condo investments are often preferred by investors who would rather receive their payback in monthly rental income rather than in one large lump sum.
But investors who seek single-family home investments for Phoenix real estate will usually have an advantage. That’s because these investors will likely receive a higher gain from buying houses, touching them up to increase their market value, and then reselling them at a later date. Since the median home price in the Phoenix area is rising right now, it is best to hold Phoenix real estate for one or two more quarters before selling in order to receive maximum gain.
Many economists have been predicting for the past year that the Phoenix real estate market bubble is about to burst. However, despite the naysayers, Phoenix AZ real estate has continued to grow for the past twelve periods. And the history of Phoenix real estate has shown that it is better to buy now and sell later rather than to wait and see before jumping in the investment game.
By the time the Phoenix real estate market goes south, many will be rich and many more will be sorry they didn’t jump in while the getting was good.