By Kristena Hansen
Phoenix Business Journal
If you’d like to discuss real estate matters, contact Rose Law Group Founder Jordan Rose, jrose@roselawgroup.com
Last year was quite a roller-coaster ride for residential real estate in metro Phoenix.
One of the most recession-battered housing markets in the nation began rebounding at an impressive rate, particularly in the latter half of the year.
While gains were encouraging in both existing-home values and new-home demand, research by various sources shows the Valley still is far from prerecession norms because of some challenges unique to the area.
The existing-home market faced record-low supply as lenders placed fewer foreclosures and short sales on the market and a large number of underwater homeowners decided to hold off on selling until prices improved.
The large influx of cash investors in 2012 also created an intensely competitive environment for traditional homebuyers, many of who opted to buy new homes out of exasperation.
Builders welcomed the upswing in demand, but they remain challenged by Arizona’s shortage of construction labor. Many workers left the profession or the state as a result of the economic downturn and the implementation of the state’s controversial illegal immigration measure, Senate Bill 1070.
This year, industry experts such as Jim Belfiore, president of Belfiore Real Estate Consulting in Phoenix, say the metro Phoenix housing market will continue to improve steadily as last year’s challenges take new shape. Although fears that Phoenix will overbuild again are unfounded, at least in the short term, Belfiore said the local housing market may never outgrow its tendency for volatility.
