Buy low and sell high. This is one of the humorous axioms of investment – yet a truth. The goal of all investors is to increase their wealth position through investing in vehicles that will maximize their internal rate of return. Real estate has historically been a sound investment vehicle assuming that you are not purchasing at the top of the market nor acquiring property in a blighted area.
The fundamentals of Phoenix are strong; it is still among the fastest growing metro areas in the country and the forecast is for growth to continue for the next decade. The Valley of the Sun has a relatively low cost of living and friendly corporate environment and the amenities and weather that go along with the Southwest.
No one can know where the bottom of the market is (was) until it has passed and on the increase. I've always felt that you have to look in the rearview mirror to see the bottom of the market. There is no doubt that Phoenix area property values are nowhere near their record setting values in 2005 or even market values prior to the boom. What this means to the investor is growth potential. Current prices have been flat for several months which could indicate that we have hit bottom. Absorption and sales have increased 100% over a year ago and demand is beginning to catch up with supply.
As a Realtor® I cannot make any guarantees about where the market will be in the future; however, it is fair to say there is great upside potential. We are far below historic property values, there is an ample supply of renters to fill the rental properties and plenty of room for capital appreciation. The market correction has left a considerable amount of opportunity for the investor who desires a “fix and flip” or rental property with a 3-5 year holding period.
Please refer to the graphs and market data that I post on this website; it is current and will give you a good idea as to where prices have been and the opportunity that lies ahead. I would also like to represent you in your transactions and believe that my experience in representing investors, as well as personal investment experience, will assist you in maximizing your profit potential while keeping an eye on the risk factors. Please call me to discuss your investment plans for the Greater Phoenix Area.
