Where should you invest in housing in the New Year? According to Forbes, Scottsdale is among one of the top cities to purchase a home in 2014. This is good news for buyers interested in Troon real estate. Forbes analyzed markets in over 300 cities across the nation in order to compile its list of “Best Buy Cities: Where to Invest in Housing in 2014.” The Phoenix and Scottsdale market was ranked in the Top 20 of the list.
Forbes worked with Local Market Monitor, a service which tracks and records data on economic growth and home prices in various cities in the U.S. Of the 300 cities studied, Forbes pulled 100 major metropolitan areas with minimum populations of 575,000. Forbes then narrowed the list down to the 20 best cities for investors using factors such as population, local job growth and, of course, home prices.
Using a variety of unique metrics, Forbes was able to identify which markets projected the most positive forecasts for investors in the coming year. The Phoenix and Scottsdale market was among those that still boasted incredibly low home prices. Despite the recent rise in housing prices and improvements in the Phoenix and Scottsdale market, there is still a long way to go before the actual average home price meets what is called the “Equilibrium Home Price.”
Equilibrium Home Price refers to the average home value in a given market without any unusual distortions such as the housing collapse. It is assumed that actual home prices will continue to rise as the market improves and eventually return to normal levels. Markets in which the average home price is far below the Equilibrium Home Price are considered ideal for investors, given these markets show steady economic growth.
What does this mean for the Scottsdale Market? The average home price in the Phoenix metro area is currently at $193,035, while the Equilibrium Home Price is calculated to $216,373. In addition, Forbes has approximated 41 percent market growth in the area over 3 years. This makes Phoenix nearly ideal for potential investors.
If you are interested in purchasing Troon real estate, now is the time. Contact us at (602) 791-0536 to arrange a showing of any Troon or Scottsdale homes for sale. Feel free to visit our Market Trends page for additional information on the Scottsdale Market.
Realtor | Attorney
Trillium Properties, LLC
8755 E Bell Road, Suite 108 | Scottsdale AZ 85260
Cell (602) 791-0536