“Arizona has some of the strongest baseline real estate investing fundamentals in the nation,” says Travis Cadman, co-founder of Calgary-based Arizona Investar.
Like many North American real estate markets, Arizona’s has undergone some significant changes in recent months. This, says Cadman, is the direct result of the market going through a period of recovery.
“Right now, it’s important for investors to know where we are in the market cycle,” Cadman explains. “There’s been some dramatic changes in this market over the past 18 months. Our data indicates that this market is going through a recovery [and] stabilization phase.”
In addition to the recovery period, there are other factors that have caused the recent changes in the Arizona market, especially regarding certain mortgage statistics.
“Mortgage delinquency rates are down considerably; they’re 80% of the way back,” says Cadman. “The percentage of first home loans over 30 days late has gone from 16.3% in December 2009, ranked fifth-worst in the country, to 7.3% as of December 2012, and that has Arizona ranked as 40th.”
The decision to invest in Arizona-based properties can potentially net some great long-term returns for Canadian buyers, but Cadman advises that they should exercise caution before doing so.
“It’s a great market to invest in,” says Cadman. However, you need to be cautious about what asset costs you’re investing into, depending on the market cycle.”
This appeared in the June 2014 issue of Canadian Real Estate Wealth
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Arizona is a hot spot in more ways than one. Widely known for its year-round hot climate, the state is also home to a strong real estate hotbed. And, as one expert explains, the time for Canadian investors to purchase properties in this Sun Belt state is now.