2012 was quite a year for real estate in the Phoenix metro. Over the last 12 months, Arizona welcomed marked improvement in the housing market, inching us closer to pre-recession levels. Here are a few signs of recovery we saw in Arizona over the past year:
- Decrease in REO properties – For the past few years, short sales, foreclosures and bank-owned properties have dominated Arizona real estate. By the beginning of 2012, however, REO homes represented only a small percentage of the market and continued to dwindle for the rest of the year.
- Lower inventory – Compared with previous years, Arizona saw a smaller inventory of homes for sale and homes on the market for fewer days, encouraging motivated buyers to move more quickly on their properties of choice.
- Low mortgage rates – In efforts to help nurse the ailing U.S. housing market back to health, The Federal Reserve lowered rates for 15- and 30-year fixed mortgages to their lowest ever. More to that point, the Fed says it plans to keep rates at or near historic lows through the next few years to encourage home-buyer borrowing.
- Higher home values – With shrinking inventories and a rise in demand, home prices in the Phoenix metro saw a significant jump in 2012. Over the past year, median home prices in the Valley surged from $118,100 to $153,000, a whopping 28.7 percent increase. This sudden rise in home prices have infused new life into the market, with more sellers wanting to sell their home at a good price and buyers to purchase while prices are still low.
So what’s in store for Arizona real estate in 2013? All indicators point to continued growth and recovery for the Grand Canyon State, with area home prices rising, mortgage rates staying low and the local and national economy improving. Stay tuned for the latest on trends in Arizona real estate and great communities like Ancala.