Phoenix Housing Rising Like a Phoenix

One of the first real estate markets in the nation to fall from its heights is leading the nation back.  After falling 55 percent from its heights in late 2005 thru the end of 2011, Phoenix area home prices are increasing and leading a housing recovery.  The recovery appears to be broad with only the million plus market lagging.  Low prices have been attracting investors for several years now.  Half of Canada owns property here now!  Just kidding.  However, several large investment funds have set up shop over the past several years now that the market has bottomed, more are showing up every day.  They are going to have a hard time though because inventory has collapsed and multiple offers are occurring for most well priced properties under $500,000.  Forget trying to find something under $100,000.....individual investors are playing along with the investment groups in this price range and they are being snatched up as quickly as they hit the market.  Prices at the courthouse steps are being bid up to retail or better and the fix and flip crowd has been squeezed out for the most part. 

No one here sees this ending anytime real soon barring another major financial crisis, but even then, the word has gotten out on both affordability and rental returns and until this dynamic changes, the froth will continue.