Phoenix and Scottsdale Make Forbes’ ‘Best Buy Cities’ List

With the recent rise in home prices, it would seem as though the window to invest has come and gone. However, according to Forbes, 2014 is the year to invest in Scottsdale real estate. The Phoenix-Scottsdale-Mesa market was among 20 major metropolitan areas across the U.S. that Forbes included in their list of “Best Buy Cities” for investors this year.

Using a variety of metrics, Forbes was able to predict market growth in over 300 cities and select those with a positive forecast for future investors. The top contenders showed strong job and population growth, as well as significantly low home prices. Phoenix and Scottsdale were among those cities with a strong potential for growth. Though home prices in Phoenix have been on the rise, the housing market is still under-valued.

Forbes compared the “Equilibrium Home Price” with the actual average home price in each market. Equilibrium Home Price refers to the average price of homes in a given city under ordinary market conditions. Because of the housing collapse, the average home price in Phoenix and Scottsdale is still well below the Equilibrium Home Price. This means that as the market gradually returns to normal, home values will greatly increase to meet the Equilibrium Home Price. This is extremely good for investors.

In the Phoenix-Scottsdale-Mesa housing market, the average home price is around $196,000, while the Equilibrium Home Price is calculated at $216,373 – a 9 percent difference. Forbes estimated 41 percent market growth over three years.

Learn more about the current market conditions in Scottsdale by visiting our Market Trends page. If you wish to schedule an appointment to view Desert Mountain homes, please contact us.