Eye On Arizona

Real Estate’s Golden Triangle: Arizona, California, and Nevada: Presents an Opportune Time for Real Estate Investors

March 30, 2009

By: Ann Belfield

As credit markets begin to free up, mortgage rates at historic lows, and the prices of real estate at affordable levels, creates an opportune time to invest in real estate in the “Golden Triangle” states of California, Nevada and Arizona.   These Golden Triangle states experienced exponential growth in property values during the real estate boom, now they are experiencing upheaval in their market value, providing a lush opportunity for investors to capture. Eventually, when the market turns around, the prices of real estate in the Golden Triangle are predicted to rise quicker than other areas because of their location, climate and amenities. These are the sought after states for a reason, not just to investors, but to people all over the world. To begin with:  California.

California

California’s temperate climate, job opportunities and coastal beauty are just a few of the reasons many want to live in and own real estate in California. California is still viewed as the “golden land” of opportunity by people residing in other countries. Silicon Valley is the land of innovation, the land of Google, Apple, Adobe, Stanford, Berkeley, along with many other technology startups, universities and high tech innovators. Hollywood, need I say more?…the world knows about it and the film industry enriches our lives with entertainment. From San Diego, to Newport Beach, to Carmel, to San Francisco, to Sausalito, just to name a few, are destination areas people love to live in, tour, experience, and enjoy.

California’s Housing Market

According to Bloomberg.com, California’s home prices dropped 41% last month from a year earlier, bringing the median price down to $247,590 for a single-family home. A year ago, in February 2008, the median single-family home price was $418,260. While this pricing seems low, it is based on all of California, rather than specific regions. It includes the inland areas that are experiencing severe price deflation.

When looking at regions in California, the single-family home value in San Diego-Carlsbad-San Marcos region, according to Zillow.com, is $358,509, reflecting a decline of 34.4% from the peak value of $546,299. In Los Angeles-Long Beach-Santa Ana region, the value is $431,486, reflecting a decline of 32% from the peak value of $603,835. The San Francisco-Oakland-Fremont region’s value is $549,086, reflecting a decline of 28% from a peak value of $713,734. Although the drop is brought on by the numerous amounts of foreclosures on the market, today’s pricing in California creates a high degree of affordability, making it an opportune time to invest and buy property.

Nevada

Nevada is the entertainment state of the United States and, Las Vegas alone, draws over 37 million visitors from all over the world per year. The climate of Las Vegas, though not as sunny as its neighboring state Arizona, still enjoys over 280 sun filled days a year and offers many beautiful tourist attractions. One such attraction is Lake Mead which draws over 10 million visitors a year.

Nevada’s Housing Market

According to Zillow.com, the Las Vegas-Paradise Metropolitan Statistical Area market experienced a year-over-year decline of 27% for single-family homes, bringing the current median price down to $196,458 from a peak of $313,275. The median condo is priced at $124,181.

Arizona

Arizona is a destination choice for many to live as part-time and full-time residents. The ideal winter climate makes Arizona a prime destination spot for retirees living in colder regions to call home during the cold season in their home states. The majestic beauty of travel spots like Sedona, the Grand Canyon, Lake Havasu, and Lake Powell draw tourists from all around the world. Many times when people visit Arizona they come back to it because there are so many unique areas to explore and they become hooked on the climate and the Arizona lifestyle and want it for their life.

Arizona’s Housing Market

During the boom was a difficult time to make a purchase, but now is an ideal time. It is a buyer’s market, and with a year-over-year decline of 22%, the median single-family home price of $186,712 for the Phoenix-Scottsdale-Mesa Metropolitan Statistical Area makes it affordable compared to peak median pricing of $288,719. The median condo is priced at $137,288.

Sources:

Bloomberg.com. 25 March 2009.

Zillow.com. Zillow Real Estate Market Reports. Fourth Quarter: October-December 2008.

Tags: Arizona, California, Golden Triangle, housing, Nevada, real esate investing, real estate in Arizona
Posted in: AZ Housing Market