Varied Reasons for Strong Phoenix Real Estate Market

The housing industry has surpassed the automotive industry "as the driving force in the U.S. economy," and accounts for about 4.8 million jobs. This thriving market has seen the average price of housing jump by 50 percent over the last five years, or in the case of Phoenix real estate, over the past 12 months.

Driving the industry are investors from around the world, including Latin America, Asia, Europe and Australia, "the leading investors in U.S. commercial real estate." These foreign investors pour "money into mortgage-backed securities, providing lenders here with still more money to lend to prospective home buyers, many of whom have substandard credit ratings."

However, it´s not just foreign investors that are driving up the prices and demand for Phoenix real estate. Household growth will accelerate over the next ten years, "with immigrants accounting for one-third of that growth." Also adding to the Phoenix real estate market´s growth is the increase in minority first-time buyers.