Canadian investors are finding super low house prices in Phoenix, Arizona, and experts say rising foreclosures will keep prices low for some time.
The median price of a Phoenix detached house has fallen to US$108,000 – the lowest point in a decade – sparking fears that a "double dip" recession is looming. The sales slump followed the ending of a federal first-time buyer incentive in June that had provided a tax credit of up to US$8,000.
As of August, more than 20,000 Phoenix-area homes were in foreclosure, up 34 per cent from a year earlier.
Canadian bargain hunters are snapping up homes, such as near-new Phoenix houses, with pools, at an average of US$97 per square foot, and luxury condominiums for less than US$100,000, according to Toronto-based Cross Border Realty.
For more information on U.S. Sunbelt real estate, see the November issue of Western Investor.
