Property Values in Phoenix Housing Market to Increase

Property values in the Phoenix housing market are expected to rise 11.1 percent in 2007, according to fourth-quarter survey by ArizonaTaxLiens.com.

Buyers and sellers projected an average increase of 10 percent increase statewide, citing the large number of people immigrating to Arizona, fueled by high tech and biotech job growth in Tucson and Phoenix, low housing costs and baby boomers buying retirement homes.

Projected property value increases for other areas of the state were:

• Tucson, 13.5 percent
• Prescott, 10.3 percent
• Flagstaff 9.8 percent
• Sedona, 9 percent
• Buckeye, 8.5 percent
• Lake Havasu City, 8.2 percent

Of the 5,000 people surveyed, 59 percent planned to buy real estate or take out an Arizona mortgage in 2007, while 32 percent planned to sell. More buyers, however, planned to settle in Tucson (52 percent) over Phoenix (29 percent).

Sixty-nine percent of the sellers surveyed planned to sell property in Phoenix.

Some of the reasons given for choosing the Tucson area were high paying jobs, affordable housing, population growth and the Rio Nuevo revitalization along with high-end condos being built downtown.