Here’s an interesting article, Phoenix Picked Clean, Private Equity Descends on Atlanta that I discovered in Bloomberg Businessweek. While the focus is on Atlanta, I thought it was a great read and recommend it to get a handle on how far the Phoenix real estate market has come in such a short time:
Michael Orr, director of real estate research at Arizona State University’s W.P. Carey School of Business and creator of the Cromford Report, is quoted extensively, with his usual well-grounded insights:
“We’ve seen some big players move away and others replace them,” Orr said in a telephone interview from Phoenix. “The new players are happy with 6 percent cash-on-cash return. Last year they would scoff at that. They wanted 12 percent to 15 percent last year, but that’s not possible here anymore.”
Phoenix entered the recession and came out of it before Atlanta, Orr said. Phoenix hit a post-bubble trough last September, according to the Case-Shiller index.
And Trulia weighs in, too:
In Phoenix, owning is 49 percent cheaper than renting, narrowing from 55 percent cheaper a year earlier. The gap narrowed even as 30-year mortgage rates fell by an average 1 percentage point to 3.5 percent, according to Trulia economist Jed Kolko.