Phoenix looks great for first time buyers. Prices per square foot are at their highest rate since August of 2008, which is an average of $131 per sq ft for residential resale homes. In August of 2011, the valley hit a low point of $79 per sq ft, so this rise in 28 months is very encouraging. The valley is just about where it would be in price per square foot if normal inflation had transpired (sans the dramatic roller coaster ride) from 2001 to 2013. Investors gobbled up cheap properties with glee when the prices hit rock bottom in the winter 2008. Multiple offers were common on lower priced properties with investors purchasing with cash clearing the playing field of first time buyers needing to finance with VA and FHA loans. Even those buyers with conventional loans were no match to cash waving investors. The Price Per Sq Foot rise signals the end of the long goodbye to investors who started to leave the valley slowly in the spring of 2012. With most of the investors gone, first time buyers can now have their turn purchasing homes on the lower to mid-range segment of the market.
*Data is provided by Michael Orr, Director, Center for Real Estate Theory and Practice, ASU, 12/17/13.