Investor Confidence Begins To Return to the Arizona Real Estate Market
HomeLovers Arizona 2010 State of the Industry Report Now Available
Glendale, AZ – February 10, 2010 – (RealEstateRama) — HomeLovers, one of Arizona’s fastest growing Arizona real estate investing and property management companies, today announced availability of its 2010 State of the Industry Report for Arizona Real Estate Investing, which outlines recent trends and takes a look at what lies ahead in 2010 for investors. The report also discusses how the investor of today is different than the investor demographics that lead to the buying frenzy of 2005 and subsequent market crash. The free report is available for download via an automated email response at investorinfo (at) homelovers (dot) com.
The HomeLovers 2010 State of the Industry Report indicates that by mid 2009, real estate trends in Metropolitan Phoenix showed a marked upswing as investors begin to show confidence in a market recovery. Report participant Michael Orr of The Cromford Report notes that pending home sales in ARMLS (the Arizona Regional Multiple Listing Service) were at a record level for January, indicating an increase in demand with a sales price increase likely to follow. He further noted that buying for the lowest price ranges is cooling off but that buying in the $250,000 – $400,000 range is beginning to increase and showed substantial activity in fourth quarter.
Key Findings in the report include:
- HomeLovers co-founders and Investing experts David Zundel and Michael Sargent expect a relatively flat market with a shallow upward trend, followed by a gradual return to historical appreciation rates through 2011 and 2012. While there may some swings in pricing, which is normal for a recovering market, there is unlikely to be another major drop and recovery will offset the damage.
- With homes selling below construction costs, the coming recovery will bring highest returns to those who bought at the bottom of the market.
- Investors should plan on holding property for a minimum of three-to-five years to leverage improving prices as the market recovers.
- Short sale transactions are likely to increase over REOs, as banks realize they reduce the loss to the lender. Until the inventory of REO and short sale homes drop to a “normal” level, prices will be held artificially low; however, this investor windfall will fade as the surplus inventory is absorbed.
- Cash buyers are likely to see the most success in purchasing short sale properties; investors relying on financing and minimal cash down are much less likely to close the sale.
- Zundel notes that over 80% of the investment properties brought to HomeLovers to manage are homes that they would never have recommended to buyers as a good investment. Investors are making purchases based on price, when there are many other factors that impact whether an investment property is profitable.
- Tenants are expecting a higher quality of rentals and investors are not doing enough to improve their properties. This has a significant impact on vacancy rates. Fresh paint and carpet cleaning is insufficient.
For more information regarding how to select the right foreclosure property in Arizona, common investor mistakes, tenant screening and more, please visit the articles page on http://www.homelovers.com or subscribe to the HomeLovers blog at http://www.arizona-investment-properties.com.
Media Contact:
Carrie Morgan for HomeLovers
602.953.8211, morgan (at) rockthestatusquo (dot) com
