Phoenix Real Estate Market – Phoenix Real Estate – Inventory and Price Stats
Phoenix and Scottsdale home inventories for sale are at multi-year lows due to significant investment coming from from private equity investors.
“Funds planning to invest more than $6 billion to buy and rent foreclosed homes are finding it easy to raise money. The difficulty is spending it. The number of low-cost foreclosed homes coming to market has dropped, bulk sales have been slow to materialize and prices are recovering in markets such as Phoenix, making it hard for private-equity firms, hedge funds and pension systems to buy as many homes as they need.”
By John Gittelsohn, bloomberg.com
Gittelsohn continues to say,
“We’ve attained key investment objectives in Phoenix, and are now entering other U.S. markets exhibiting the traits we first identified in Arizona,” Breitenstein said in a statement. “There are a select number of other cities and sub-markets that offer the right combination of currently distressed housing prices, a stable if not rising employment rate, and investment fundamentals that fit our model.”
American Residential Properties Inc. raised $225 million in a private real estate investment trust offering that was completed on May 11, President Laurie Hawkes said. She expects the REIT, now limited to institutional investors, to go public next year. The Scottsdale, Arizona-based investment firm previously committed about $85 million for more than 650 single- family rental homes in Arizona and Nevada through a separate fund.
“There’s no question the Phoenix market has become more competitive,” Hawkes said in a telephone interview. “But we’re still finding a lot of opportunity in Phoenix as well as our other target markets.”
Prices have also begun to recover in Miami as the supply of foreclosed homes dwindles. Home values were up 2.8 percent through March from a post-peak low in April 2011, according to an S&P/Case-Shiller price index for the area.”