Psst! There's a Real Estate Boom (Yes, a Boom) in Phoenix, Arizona

Posted by Alex in Money & Finance, Travel & Places on May 24, 2009 at 12:54 pm


After the big real estate bust in Phoenix, Arizona, a new trend is afoot: a boom in the market for foreclosed homes, where investors buy properties then lend it back to the (former) owners turned renters:

With this sweltering desert city enduring one of the largest tumbles in housing prices for any urban area since the Depression, there is an unrelenting stream of foreclosures to choose from. On some days, hundreds are offered for sale at the auctions that take place on the plaza in front of the county courthouse.

There is also a large supply of foreclosed families who can no longer qualify for a loan. And that is prompting a flood of investors like Mr. Jarvis, who wants to turn as many of these people as possible into rent-paying tenants in the houses they used to own.

Real estate got just about everyone into trouble in Phoenix, and the thinking seems to be that real estate is going to get everyone out.

The low end of the real estate market here — and in some equally hard-hit places like inland California and coastal Florida — is becoming as wild as anything during the boom.

David Streitfeld of the New York Times has more: Link

(Photo: Joshua Lott / NY Times)


Previous post
this post? Please Email this               
Next post

Tags: , ,


FUN PRODUCTS FROM THE NEATORAMA SHOP:


COMMENT

5 comments to "Psst! There's a Real Estate Boom (Yes, a Boom) in Phoenix, Arizona"

  1. Skipweasel
    May 24th, 2009 at 4:19 pm

    Well, that's supply and demand for you. A ready supply of customers looking for somewhere to live, and a whole heap of houses which didn't go away just 'cos no one could afford them. It was fairly inevitable that either you bulldoze them, or their value falls sufficiently to allow people to afford them again - either rental or purchased.

  2. Vonskippy
    May 24th, 2009 at 4:52 pm

    Nothing like the rich taking advantage of the down trodden to warm your heart substitute. I'm sure those former owners now renters will take REALLY good care of the property.

  3. Kalel
    May 24th, 2009 at 9:04 pm

    I can tell you that Phoenix is growing like a 1950s movie monster. It already ate my former home of Apache Junction, and threatens the West Coast if we don't call in the Army NOW!

  4. inflationnation2009
    May 24th, 2009 at 11:18 pm

    I've been watching the supply of homes for sale in PHX and other markets plummet on ListingSupply.com, and I've been waiting to see news like this. I still think we have at least a few more months until prices level off in PHX, but at least this is a start, right?

  5. roxi618
    May 26th, 2009 at 5:36 pm

    How ironic is that? A real estate boom in the number one state where identity theft is running rampant!!!


PLEASE LEAVE A COMMENT

Neatorama Comment Policy
You don't have to register or login to comment, but it's easier if you do so. Comments aren't censored, but those that are abusive or off-topic may be edited or deleted.


Stay updated on the comments with Comment RSS