Investment Opportunity Research

    Real Vision Group has researched different aspects of the real estate market and concluded that entry level housing 1-4 units is showing strong signs that its reached its bottom. For example, current Pending Sales year to date are 3,020 . This is due to price levels being lower than what homes were selling for in mid 1990’s and the early 2000’s. Therefore, we feel now is the time to invest in this aspect of the Phoenix income real estate market. Its a great time to get a positive return on investment Phoenix Investment Property. We have come to this conclusion based on M.L.S. (Multiple Listing Service) data. The historical data is showing indicators of a recovery in the low end of the market; this is due to many factors. The first is pricing; these homes are now priced at values that investors can actually receive very good cash on cash returns. Second, the new $8,000.00 tax credit for first time home purchasers has brought a substantial number of homebuyers to the market place. The combination of these two factors alone has put tremendous pressure on entry level housing. Also take into account historically low interest rates as well!

     Our research shows that this current market is very similar to the last major recession Arizona experienced in the late 80’s. The 1986 TAX REFORM ACT was implemented. Soon after this, the real estate industry began to collapse and over 200 savings and loan institutions closed their doors. Billions of dollars of real estate was being auctioned off at pennies on the dollar. Currently we are experiencing the same conditions. From 1986 it took approximately 4 years before the real estate market began to recover. 1986 was the peak of the market during the last major recession. 2005 was the peak for our current market and has since experienced major declines during this recessionary period. We feel 2009 will be the beginning of the recovery for entry level properties and by comparison is approximately 4 years after the peak in 2005.

     In conclusion we have established an investment assumption that should be considered but not deemed as fact: If as an investor you are buying properties at price levels not seen since the mid 90’s, along with positive cash return on an annual basis, then the following should be considered as well. There was a spike in prices in 1991 and 1992 in comparison to what they were being purchased for only couple of years prior. Our conclusion is this will happen in the current market as well. So one must keep in mind, pricing should spike to at least 2004 price levels, which was a stable time in Arizona’s market. However, this is an opinion and should not be construed as anything other than an opinion.  Such a spike could bring substantial returns on your money invested.  

Historical Data Indicates Opportunity