The sharp fall in house prices attracts buyers, and Phoenix, the hardest-hit area, rebounds brilliantly

The plummeting house prices attract buyers, and the hardest-hit Phoenix City rebounds brilliantly (Alberta Times) Real estate economists across the United States are now studying the surprising housing market rebound in Phoenix...

The sharp drop in housing prices attracted buyers, and Phoenix, the hardest-hit area, rebounded brilliantly (Alberta Times) Real estate economists across the country are now studying the surprising housing market rebound in Phoenix. The sharp decline in housing prices has brought in new buyers, unlike other areas where a large number of unsold houses and foreclosures are stifling the housing market recovery. While housing prices continue to fall in most cities across the United States, the rebound in one city's housing market is enough for other regions to learn from the experience. Phoenix, Arizona, was once the hardest-hit area of ​​the housing market recession, with home prices falling 55% from 2006 to the end of 2011. In 2009, the state's foreclosure rate jumped to third in the United States. Thousands of homeowners are insolvent, meaning they owe more on their mortgage than the property they own is worth. Housing economist Thomas Lawler said: The housing market has hit bottom. ?#20182; He was also the first person to warn that over-building in cities would lead to falling prices six years ago. Phoenix's recipe for a successful housing rebound The nation's battered housing markets are facing a dilemma: There are no traditional homebuyers to help revive the housing market, many of whom are unable or unwilling to sell their existing homes because prices have fallen too far to buy another. According to the Wall Street Journal, Phoenix has found a formula that works. Low house prices attract first-time home buyers and investors investing in rental properties. Large local companies such as Amazon and Intel are hiring workers again, further stimulating demand for housing. In addition, thanks to a group of buyers from Canada, they take advantage of the favorable exchange rate to bargain for money in this desert city. According to statistics, a quarter of the buyers last month were from outside the country, 29% of the buyers planned to rent, and one buyer in every 25 transactions was a Canadian. Some real estate developers even went to Canada to participate in trade shows to attract buyers. It is said that the booth attracted 5,000 people to stop and inquire in two days. Local general investors also play an active and key role. Gerundoy paid $50,200 for a two-bedroom condo last month, just above the bank's listed foreclosure price. Gerundoy, 49, has bought 13 residential properties in Phoenix over the past two years and rents them out for as low as $950 a month. Driving a Jaguar, he said that his current income as a landlord was very good, so he quit his bank job in New Jersey last year. House prices fell sharply, attracting first-time home buyers and investors. According to the S&P-Case-Shiller Index tracking house prices in 20 cities, U.S. housing prices fell by 2% seasonally adjusted in the fourth quarter of last year, while prices in Phoenix rose by 2%, the largest increase in the United States. For the past full year, Phoenix home prices fell 1.2%, the smallest decline since 2006. A sharp decline in home prices is another key to the housing market's recovery, as it has been in Phoenix. Detroit home prices have fallen 46% over the past six years and are now down to 1994 levels. Sales are also starting to climb in Miami, where home prices have fallen more than 51% over the past five years. Local jobs also key With the spring selling season underway, other cities are showing signs of recovery. Detroit's recent auto industry job growth has boosted home sales. Washington, D.C., has benefited from better job prospects provided by government agencies and housing prices have outperformed many areas across the country. However, without enough employment opportunities, low housing prices alone are not enough to prevent the housing bubble from bursting. For example, in Las Vegas, home prices have fallen 62% since 2006 and 8.9% in the past year. The local economy relies heavily on tourism and gambling, both of which have not yet recovered. Hidden concerns still exist in the U.S. housing market. Housing demand across the U.S. is still weak. It is expected that sales of silver auction houses will increase this year, which will put further pressure on housing prices. Many economists estimate that U.S. home prices may fall another 3% this year before hitting bottom next year. Most economists believe home prices will rise slightly for several years. Phoenix's improving housing market hasn't made life easy for residents who bought property a few years ago. According to CoreLogic Real Estate Research, more than 52% of homeowners with a mortgage owe more on their loan than their property is currently worth. Not every Phoenix resident believes the good times can last, especially if the economy continues to weaken or oil prices soar. Three years ago, the federal home purchase tax credit was introduced, which caused a housing buying frenzy in Phoenix. Housing prices also rose, but after the discount expired, housing prices fell again. There are also concerns that banks will release more foreclosures in the coming year, saturating the market again. Burns, a residential construction consultant in Irvine, California, said that many markets across the United States have hit the bottom, but they have not seen a recovery like Phoenix.