Yash says the land market in Phoenix is very intriguing, in comparison to the land market in India. “Raw land is currently selling here at $.10 to the dollar, down from 2006 values. Conversely, land in India is selling at five times the 2006 values. $100 invested in Metro Phoenix in raw land shall be reduced to $10. While $100 invested in India in similar lands will be equal to $500. This is unbelievable!”
According to Kuldip, the number of homes listed in the Phoenix market has come down from 56,000 in 2008 to 17,000 in 2013. There were roughly 17,000 homes on the market in 2004, right before the huge price increases of 2005 and 2006. Last month the median price for a single-family home in Phoenix jumped 4%, which is a huge jump. “I anticipate similar price jumps in the next few months because of the lack of supply,” says Verma.
According to Collier's international, Phoenix-area land acquisitions are up 59% year over year because of rebounding home prices and low inventory of existing homes in the first half of 2012. The valley's land acquisition activity in the first half of 2012 had a median price surge up 80%
compared with last year. Nearly 70% of land sold in 2012 is slated for residential development, significantly up from 55% three years ago.
According to Kuldip, he started seeing movement in the land market approximately six months ago. Over the last three months, the activity has greatly escalated. “If I was to time the market, 2011 was the perfect time to purchase a house, 2012 was the perfect time to purchase a finished lot, and 2013 is the perfect time to purchase raw land. Only 17% of land in Phoenix is private land, therefore home builders are limited in terms of suitable
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