Local Market Almost At Number One

Posted on Posted in Residential

Phoenix Went From Worst To Almost First

Phoenix was previously considered as one of the worse housing markets in the US. However, at present, it seems that things are looking good for the state with its current ranking.

For example, The Valley now holds the 2nd spot the list of the top US cities for homeowners of Bankrate.com. With such ranking, Phoenix is just behind Portland, Oregon with regard to consumer-finance firm’s rating.

Though it is good to know that a bright future is awaiting for metro Phoenix’s house market, some people may be wondering whether such good news is just based on some random search and does not really reflect the true conditions of Phoenix.

However, with regard to Bankrate’s ranking, the website considered several indicators in formulating their list. Some of these factors, which include appreciation, property tax costs, and foreclosure rates, were used to compare housing markets.

Compared with other states in the country, Metro Phoenix showed a relatively higher average increases when it comes to home values and has the lowest property taxes.

Bankrate is also expecting that Phoenix will be moving up to their list thanks to its low foreclosure rates. Interestingly, six years ago, high foreclosures and negative appreciation caused Phoenix to be labelled as “boomtown gone bust.”

In addition, Bankrate also consulted some credible resources regarding the website’s study. These resources include ATTOM Data Solutions, the Council for Community and Economic Research, the Federal Finance Agency and the National Association of Insurance Commissioners. These organizations helped Bankrate in rating the cities from 1 to 10 under several categories. As a result, a city gets a higher ranking when it is given a higher score.

The scorecard for metro Phoenix included the following information:

  1. AFFORDABILITY

SCORE: 8

Based on the information provided by the national mortgage firm HSH.com, The Valley is the 8th most affordable big US metro area where a person can buy a new home.

  1. PROPERTY INSURANCE

SCORE: 8.99

Because it only suffers a few deleterious storms and natural disasters, Arizona bagged the 3rd lowest average homeowners insurance premium in the US, as indicated by Insurance Commissioners.

  1. PROPERTY TAXES

SCORE: 8.38

Admittedly, when considering taxing homeowners in the US, Arizona’s systems can be deemed as one of the most complex. Still, people can buy the least expensive places for property taxes in the state.

  1. ENERGY

SCORE: 5.32

In this case, Phoenix’s score is not that high. Such result can be attributed to the triple-digit temperatures that result into higher AC bills.

  1. APPRECIATION

SCORE: 9.51

The Valley last hit the market bottom in 2011. However, at present, the previous prices of home in the place are now doubled.

  1. FORECLOSURE

SCORE: 9.46

A number of Valley homes are now in the hands of lenders again. Moreover, these homes are now priced at low pre-bust levels, which have not been observed since 2006.