As homes sales begin to rise in Mesa, the housing market is beginning to show signs of recovery. Statistics for both April and May both indicate that home sales are on the rise.
As published in the Arizona Republic, the following numbers indicate that the Arizona housing market is on the mend:
• Foreclosures did not dominate sales of existing homes in the Valley for the first time in more than a year.
• The number of investors purchasing homes from lenders dropped.
• More buyers purchased homes with the intent of living in them.
• More buyers financed their purchases with long-term mortgages.
Although the housing sales for April included the rush of first time home buyers who used the tax credit offered by the federal government, home sales continued to increase throughout May. This indicates that the increase in home sales is not solely based on the tax credit.
Another reason experts believe the market is starting to recover is the return of long term investment buyers. In the past, the market was dominated by investors and people who were looking to “flip” a property for quick profit.
According to the Arizona Republic, during the peak of the housing market, nearly 60 percent of all home sales were made by investors. Last year at this time, nearly 20 percent of all home purchases were made by investors with no intent in living in the home.
Currently that figure has dropped to 15 percent. This new surge of long term investment home buyers will help to stabilize the Arizona housing market. Also, with people purchasing homes with the intent to stay in them, the prices of homes with slowly start to increase in the near future.
Currently, there are many homes available in the Phoenix area. If you are interested in researching available homes in the Mesa area, you can visit here.
