Predicting that real estate transaction volume in 2014 should reach up to $340 billion (from $290 billion in 2012), confidence in the real estate market is now thankfully improving. With an increase in employment and a gradually improving economy, real estate market predictions call for a slow yet steady recovery. According to an article in Forbes, the Phoenix-Mesa-Scottsdale housing market may be ahead of most of the nation in regards to this rebound.
To compile this data, Forbes teamed up with the Local Market Monitor, and tracked home prices and economic factors in more than 300 housing markets. Out of these 300 markets, the top 20 housing markets to invest in for 2014 were found, otherwise known as “Best Buy Cities.” Phoenix was included in this “Best Buy Cities” list.
Pulling data from metropolitan areas with a population of at least 575,000 people, choices were ranked primarily from four key factors. Each of the “Best Buy Cities” has a high population, healthy job growth, somewhat low housing prices, and are considered “under-valued,” making investment opportunities fairly low-risk for smart buyers that know not to overpay. A healthy local economy is also an important consideration for investors, since there is no point in purchasing a home if the population decreases over time. Overall potential opportunities and prospects for the future are increasing in these “Best Buy Cities,” which is why they were chosen.
According to the aforementioned article, Forbes and Local Market Monitor used a metrics dubbed the “Equilibrium Home Price.” The EHP is the value that essentially “tracks what the average price of the market should be, if speculation, weird distortions in the local income and other factors (like the housing collapse) were not present in the market.” This was an influential factor that made the Phoenix-Mesa-Scottsdale housing market a suitable candidate for the list of “Best Buy Cities” because the actual average home price is currently $196,035, and an EHP is $216,373, a 41 percent three-year growth forecast.
While the Phoenix housing market is still in recovery, many local real estate experts are confident in the continued turnaround in 2014. If you are looking to sell your home within the Phoenix area, now is the best time to do it! Please contact AllHomesAZ.com today for a free home appraisal and consultation with one of our knowledgeable agents.
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