Locals Grab A Piece Of Real Estate Action

More out-of-state buyers edged out; Valley residents jump in for long haul...

The Arizona Republic reports that many of the investors today in the Phoenix market are local investors who are in it for the long run.

"The out-of-state investors who bought new homes and sold them at a profit the minute they were built are gone," said analyst R.L. Brown. "Home builders started limiting those deals early on, and that helped spur buying in the resale market." R.L. also said that more investors now are local long-term buyers and landlords who don't need to make a profit in 30 days.

The Valley's 50% run-up in home prices during the past year and a home builder ban on investors has put off some speculators that don't live here. In May, 26 percent of all home buyers were from out of state. In September, it had fallen to 20 percent.

Also, the number of homes on the market has jumped dramatically. In April 2005, there were less than 9,000 homes on the market. Now, there are 17,000 homes on the market, showing that the frenzy of investor purchases has eased and that many are putting their investment properties on the market to capitalize on the appreciation these properties have produced. More...