RISMEDIA, Jan. 3, 2008-According to NewCondosOnline.com, the Phoenix Condo market will recover quicker than other markets. The Phoenix condo market has been under the microscope of national analysts ever since the rapid increase in sales and home values in 2005. Economists and real estate professionals begin monitoring sales, inventory levels, and absorption rates as the whisper of a market bubble gradually turned into a nationwide debate. Among the major cities in this discussion were Miami, Atlanta, Washington D.C., San Diego, Los Angeles, Las Vegas, and of course the greater Phoenix area.
The main point to understand is that while it helps to look at national statistics to understand the overall trends in the declining housing market, one must dig deeper to understand their local market. Phoenix condos and condo conversions paved the way for possible oversupply during 2005 and 2006 in the same way that condo development did in most major markets did. Phoenix was also flooded with investors and speculators that fueled the violent upswing in values. Of course, homeowners rejoiced as they watched their equity grow and people across the country all of a sudden became real estate “experts.”
“Phoenix condo owners and self proclaimed investors viewed their residences as money-makers instead of just homes,” says Brent Gleeson, president of NewCondosOnline.com. That has now changed as Phoenix and other major cities across the country have seen drastic decreases in value. An interesting point to note is that home values in the greater Phoenix area were relatively undervalued at the time the market started to soar. The increases in value in the Phoenix area brought homes and condos to a more comparable level as compared to the rest of the country still leaving relatively affordable opportunities.
“New Phoenix condos are still underway despite slowing sales because many analysts expect the Phoenix market to correct more quickly than other cities. New urban development and infill construction are continuing with great projects such as Mosaic in Tempe which will house 236 condos and ground floor retail such as Whole Foods,” says Gleeson.
For more information, visit www.NewCondosOnline.com.