Arizona Real Estate Notebook

The first impression of a non-Phoenix based commercial real estate guy is that Phoenix residential real estate is bottoming out now.

I was struck by two things: (1) many of the recent sales in the neighborhood were well under $100,000. Some were as low as $50,000; and (2) the other shopping centers nearby were not filled only with 99 Cent Only stores and check cashing shops. In fact, the closest grocery stores were upscale, with hardwood floors and expensive lighting in the produce area, as well as other upgrades.

The bottom line is, home values in places like Phoenix are much more likely to go up in the coming years than to go down. In all likelihood, we are looking at a bottom right now.

It’s nice to get a knowledgeable outsider’s view of the Phoenix market, and a unique way of looking at the market to boot.