Phoenix Metro Home Market Draws a Major Influx of Corporate Investors

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Desert Property Investor today confirmed statistics presented by leading industry analysts: that the Phoenix housing market has lately drawn a major influx of deep-pocketed, corporate investors.

Relying on data presented by the Arizona Republic Online, Desert Property Investor echoed analysts' concerns: namely, that institutional investors and hedge funds are "squeezing out" other potential buyers in the Phoenix area, which could have far-reaching effects on the housing market there. The rationale for Desert Property Investor's concern was due to statistics showing that corporate investors drove up the median purchase price for Phoenix-area homes 40 per cent last year, while cutting the supply of houses in the region, transforming many which are available into Arizona home rentals.

An influx of corporate investors has made it hard on the traditional buyer in Phoenix, who is finding it difficult lately to close a deal and in need of investment property advice. Of more concern is that in 5 years or so, these corporate investors will sell their holdings "en masse" sending Arizona home prices on a downward spiral.

A Hedge Fund is a class of institutional investor, which operates by taking both "long" and "short" positions in a variety of markets, the goal being a positive fiscal return for clients, whether those markets are rising or falling.

Desert Property Investors echoes the concerns of many analysts with their eyes on the Arizona housing market: namely, that hedge funds and other "deep-pocketed" corporate investors have begun a "feeding frenzy" with respect to the buying and renting of Arizona property. Should these investors decide to sell these homes "en masse" at some future date the Phoenix market in particular could suffer a downturn in home prices.

About Desert Property Investor:
Desert Property Investor evaluates opportunities, pitfalls, services, and legislation related to the investment in residential property in the California, Arizona and Nevada deserts.

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