Will the Arizona Real Estate Market Continue to Rise in 2013?

• As part of the Fiscal Cliff negotiations, Congress has renewed the 2007 Mortgage Debt Act. What does this mean for Arizona Short Sale transactions? The extension means homeowners now will be excused from paying taxes on forgiven mortgage debt through 2013. The law, established in 2007, was set to expire Dec. 31, 2012.
• In an effort to keep the economy on the way to recovery, interest rates will remain historically low for the foreseeable future.
• The reduction in distressed inventory and improving equity will stimulate homeowners to consider listing their homes as traditional sales. Distressed sales, long regarded as the bane of the Valley’s pricing recovery, were 57.7% of total sales in January of 2012, declining 18.3% by year end.
• First time home buyers are expected to re-enter the market now that they are not afraid their investment will lose value.
• Many of the previous homeowners who lost their home to short sale will now be eligible to re-enter the market to purchase instead of leasing.
• The increases in property values will continue to rise. However, compared to the mid-2000′s the current prices remain a ‘bargain’. The median list price for a property in the greater Phoenix metro area in December 2012 was up 30.1% from the median list price in December 2011
• In general, the more positive outlook regarding jobs and the economy will boost the greater Phoenix metro area real estate market.

 As we move forward from the real estate housing boom to the burst bubble. We have survived the drastic economic downturn and now look forward to recovery. However, we have no crystal ball to see and accurately predict what lies ahead. Hopefully, we have learned from our past mistakes. The positive 2012 Arizona Real Estate Market gives us hope as we look forward to 2013 and beyond. As Americans, home ownership is a major part of the ‘American Dream’. 

If you or anyone you know is looking to sell a home, or even just interested in learning more about the Arizona market please feel free to give me a call at (480) 290-6959, email me at amber@arizonaelitehomes.comor check out my website at www.arizonaelitehomes.com.