West Valley Market Trends

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West Valley Market Trend Report, presented by Mike Orr, Cromford Report

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West Valley Market Trends

  1. 1. West Valley Market Update<br />March 15, 2011<br />MIKE ORR: Founder<br />www.cromfordreport.com<br />mike@cromfordreport.com<br />© 2011 www.cromfordreport.com<br />
  2. 2. Major Trends - Positive<br />Economy & job situation improving<br />Low prices stimulating stronger demand for homes<br />Growth in demand is coming primarily from investors<br />Buy & hold strategy growing in importance<br />Great time to be a landlord<br />Low purchase price<br />Rents steady, plenty of tenants<br />Excellent cash flow<br />Foreclosure wave now well into a long slow decline<br />Supply has been declining since late November 2010<br />© 2011 www.cromfordreport.com<br />
  3. 3. Major Trends - Negative<br />Strong shift from ownership to rental occupancy<br />Finance difficult for would-be owner-occupiers<br />More loans now underwater <br />Average sales prices down nearly 13% since June 2010<br />Arizona population peaked in 1Q 2009*<br />Out-migration started late 2007*<br />Significantly affects demand in south and west inner valley<br />Maricopa has 206,000 fewer people than we thought<br />* Source = Marshall Vest, University of Arizona<br />© 2011 www.cromfordreport.com<br />
  4. 4. Pricing<br />
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  7. 7. Supply<br />
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  14. 14. Demand<br />
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  20. 20. Foreclosures<br />
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  24. 24. Where Has the Foreclosure Crisis Hit Hardest?<br />
  25. 25. More Than 35% of Single Family Homes Foreclosed Since 2006<br />
  26. 26. More Than 20% of Single Family Homes Foreclosed Since 2006<br />
  27. 27. Fewer Than 2% of Single Family Homes Foreclosed Since 2006<br />
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  29. 29. Short Term Outlook<br />Overall demand now outpacing supply<br />Downward pricing pressure eased<br />Investor demand is key to low-end market<br />Signs of recovery above $300,000 <br />Continued weakness in areas with highest population declines <br />© 2011 www.cromfordreport.com<br />

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