Real Estate markets around the US are beginning to stabilize. This is especially true for the Phoenix. Making it the best time to get into real estate before thousands of buyers begin to get back into the market. Combine that with rising rents and buyers already driving up prices, many people who invest today will make a lot of money in the future. Which gives us the Seven Reasons why others are investing and why you should too… to take advantage of the current up-swinging market.
The average inventory for Phoenix, Arizona is normally 35,000 at any one time. But after the financial crisis of 2008, it hasn’t fully recovered and has been hovering around 23,000 homes. This critical supply shortage is why prices have been increasing by double digits over the last few years. While the inventory is low and an increasing number of buyers coming onto the market, we are on the cusp of a Phoenix real estate boom.
Two types of buyers are starting to get back onto the Market, Boomerang Buyers and First Time Buyers. Boomerang Buyers are the people who suffered great losses in the 2008 Financial Crisis and are now returning to buy again after bankruptcies (seven years to get off of their credit reports), short sales, and foreclosures. The other buyers are first time buyers who have wanted to buy for years, but couldn’t with the economy being bad, the stagnation in wages, and increasing rental prices. All of which kept them from buying. But with current strength in job growth and wages, this will be the decade of the buyer.
Lending has been seriously restricted over the last few years because of government oversight. This has caused huge pent-up demand in middle and low income areas. However recently, regulation as decreased and have lowered required FICO scores, down payments, and many others.
Therefore, it is a time to buy before everyone else does. As the requirements lower more, more people will be able to enter the market and buy up all the deals. Therefore anyone sitting on the fence and thinking about whether or not they should invest in real estate and trying to find the “best deal” are not going to make any money at all. This is why it’s imperative to get in today before the buyer boom and it becomes harder and harder to find deals worth buying.
Making money in real estate is all based on when you buy. And prices today in the Phoenix are still relatively cheap compared to prices in the past as well as other major cities. This is because the buyer boom hasn’t come full swing yet. But each day, the window of opportunity is closing as there are less and less good deals as people are beginning to pour into the market. Every day properties that would make someone tens of thousands of dollars over the next ten years are disappearing at a rapid rate.
Employment makes strong buyers. And strong buyers are only going to add to the huge buyer boom that is coming over the next few years. Combine this situation with the loosening in lending, the undervalued and affordable prices in Phoenix, and the return of the major home buyers (Boomerang and First-Timers), and you have huge opportunity as a real estate investor.
Another big trend in Phoenix that is going to affect demand is the increasing population. As more people means more buyers and renters. This makes investing in real estate a great time to buy and hold to collect rent as the rental boom increases and sell later when the buyer boom is at its height. Therefore, buying today will allow you to make more money on both by having what people need. A place to live.
Phoenix has only now become a new-found seller’s market. With the trends of dwindling inventory and ever-increasing demand, it will only become stronger and stronger. Therefore, it is time to become a real estate investor and make money before the small window of opportunity closes.
And the first place to start is getting real estate training. Not just an education, but actually training with mentors who will do hands-on training with you.
Which is why the Matrix has opened the “Real Estate Gym” where you can learn…
Get trained by people with over 120 years’ worth of real estate experience.
If you have any questions, give us a call or come into one of our weekly seminars.