If you are looking for a good real estate investment, now is a good time to purchase foreclosed homes in Phoenix. The communities in the Valley still have many jobs to offer, so people are drawn there to live and raise their families. At the same time, there is an overabundance of homes that are in foreclosure, creating the perfect opportunity for many people.
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. Maricopa County, Arizona, which is where Phoenix is located, recorded nearly 70% of the foreclosure filings in the state in August.
There are distinct areas across the Valley that have suffered the most foreclosures, and the common factor is that each area is known for its affordable homes. 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. This clustering of foreclosures will force prices down over the coming months as the pattern becomes more and more noticeable.
Is it a good time to buy? Often buyers are reluctant to venture into a cold market, awaiting the signs that prices are rebounding before making their move. Here in Phoenix, unemployment remains low and Phoenix ranks highly in percentage growth terms of jobs in the private sector, so demand for affordable rental housing is strong. Individuals who currently reside in the suburbs, will be reluctant to move from this area if they are in the process of having their homes foreclosed, as will individuals presently living in the city.
So if you are wondering if you really want to invest, you should keep in mind that you don’t have to buy the foreclosure to live in yourself; you can buy it as a rental property and a source of additional income. It is expected that the for the buyer, your ultimate potential for negotiation will definitely peak this fall in Phoenix.
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