subject: Will Demand Rise Once Again? [print this page] Probably not a bad time at all to buy Phoenix Foreclosure homes! 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. Phoenix is now the fifth largest city with a population of 1.5 million in 2006. It is a fast growing city today, growing by another 43,000 people between 2005 and 2006. 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. Phoenix is county seat of Maricopa County, which recorded 70% of the significant increasing foreclosure filings in Arizona in August.
Certain areas have suffered from more foreclosures than others, however all of the areas affected are known for affordable home prices in the Phoenix area Valley community. 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. Some local experts believe that other clusters of foreclosures will be noticeable over the next 6 months pushing prices down in those areas as well.
So this begs the question to be asked: is now a good time to buy in Phoenix? Many buyers are hesitant to make a purchase at this time, preferring to wait until they can be more confident that the market is recovering. The appeal of rental property in Phoenix is high, thanks to the encouraging private sector job growth, and low unemployment. People who are losing their homes don't want to move from the city itself, or the suburbs they are currently living in.
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.
