![]() As investor demand & foreign buyers have receeded, companies like Opendoor have entered the local market to try to profit from adding liquidity to the market & making it easier to sell a home quickly, though it remains to be seen how they will perform during a recession. When the recession hit, demand for the rapidly increasing stock of homes disappeared until prices fell far enough to attract foreign buyers & Wall Street investors.Ĭanadian vacation home buyers and hedge fund rental buyers snapped up properties at discount prices, which helped the Phoenix property market recover. The Boston property market fully recovered in 2015 to pre-crisis levels and is still increasing. For example, the S&P/Case-Shiller Home Price Index for Boston saw only a 17% decline in home values during the same period. Other regions performed much better than Arizona during and after the real estate crisis. The index has steadily climbed back up to 170, although this level is well below pre-Recession highs. The index stuttered through 2011, where it finally reached the end at 102. This all-time high was quickly followed by a steep decline, bottoming out in May of 2009 at 104, which was more than a 50% loss in property prices. One of America's most widely followed real estate health gauges, the S&P/Case-Shiller Phoenix Home Price Index, experienced a peak in June of 2006 at 227. Phoenix was especially hard hit during the 2007-2008 economic contraction. With a tepid forecast for future growth rates, it will still be some years before the Grand Canyon State gets back to pre-Recession levels, particularly on an inflation-adjusted basis. As already noted, the current estimate is $225,00, showing that Arizona still has not completely recovered. The median home value in August of 2007 for the state was $243,000. According to CNBC, Phoenix saw a decline of 56% in home values from 2006 until 2011, when the recovery finally began, making the drop in prices one of America's largest lagging only Las Vegas. CNN reports that during the Recession, the number of foreclosures increased more than 200% in the Grand Canyon State.īesides the construction of new homes, prices of existing properties in Arizona also took a major hit. Nevada was the only state in the Union to post a larger decline. Bureau of Labor Statistics, the construction industry for residential properties in Arizona saw a 48% decrease in unemployment as a result of the mortgage debacle. That rapid price rise set the state for a sharp fall.Īrizona's housing market was one of the hardest hit by the Great Recession of 2007. Arizona Real Estate Trends Before the 2008 Real Estate Crisisīetween 19 Arizona real estate prices appreciated at over 80% beyond the broader general rate of inflation. Arizona still hasn't fully recovered more than a decade later, although foreclosure rates have stabilized and home prices are increasing. The Great Recession was especially bad in the Grand Canyon State, sending not only property values down, but also employment rates. While Arizona's climate may not appeal to everyone, the state does offer mild home prices and a low property tax rate.
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