Desert Property Investor today examined some of the highlights of the 2012 housing recovery, the effects of which have been felt most acutely in Phoenix.
Phoenix, AZ (PRWEB) January 02, 2013
Following a story that appeared on CBS Money Watch online, Desert Property Investor concluded that the U.S. housing market recovery has been largely fueled by corporate investors buying up distressed properties -- most notably in Phoenix, which led the nation in housing price increases for 2012, and where a significant percentage of home foreclosures have been turned into Phoenix vacation rentals.
Desert Property Investor was particularly swayed by comments from Mike Orr, director of the Center for Real Estate Theory and Practice at Arizona State University's Carey School of Business. Orr noted reduction in inventory of short sale properties as the primary driver of the housing rebound, especially in Arizona. Desert Property further surmised that historically low interest rates have drawn Wall Street hedge funds into real estate, as a way of reaping larger returns on ventured capital. For those readers interested in investing tips -- via short term historical data, Desert Property culled these highlights from 2012, which appeared prominently in the CBS news story:
1) The biggest housing price increases occurred in areas hardest hit by the Great Recession, most notably, Phoenix.
2) Home prices were up in more than half of the 384 metro area markets in the second quarter of 2012.
3) Pending sales of existing homes were up 5.2 per cent as late as October.
4) Overall 2012 housing inventory was down, 22 per cent, year-over-year.
Desert Property Investor is of the opinion that the home rental market, already skyrocketing in Arizona, will remain strong for the foreseeable future, until such time as hedge funds begin liquidating their supply of homes, even as the credit markets finally begin to loosen up, making it easier for the rank and file consumer to secure a mortgage.
Desert Property Investor examined a report appearing in CBS Money Watch, and concluded that corporate investors are driving the current housing rebound (in Arizona, and nationwide) by buying up significant quantities of single and multi-family homes. DPI insists it's difficult to tell whether the 2012 indices highlighted in this announcement will extend into 2013, or carom back, into negative territory.
About Desert Property Investor:
Desert Property Investor examines the current pitfalls, services and ongoing legislation relative to residential real estate prices and opportunities in the California, Arizona and Nevada deserts.
For the original version on PRWeb visit: http://www.prweb.com/releases/prwebArizona-housing-recovery/2012-phoenix/prweb10287797.htm
© 2023 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.