SCOTTSDALE, Ariz., May 8, 2017 /PRNewswire/ -- The Tucson, Arizona housing market is accelerating and striving to return to levels prior to the Great Recession. Correspondingly, the investor driven "fix and flip" market is improving.
Capital Fund 1, a source for short-term financing for real estate projects, is closely following this trend since the company serves the Tucson market as well as Maricopa County, Flagstaff, Prescott and others.
"Tucson's real estate market has been slow since the crash in 2006. Thanks to real estate investors in its market, the residential supply has continued to grow. With the help of private capital investors, more properties will be brought up to current market standards," claims Noah Brocious, COO of Capital Fund 1.
For Tucson, there was a significant decrease in foreclosures, large job growth, an increase in new home sales, and new home permits consistently outpaced 2015 by about 25%. The number of permits in November 2016 was a 55% increase from the prior year. According to Ginger Kneup of Bright Future Real Estate Research, these results "may be the strongest indicator yet of a sustained return in the demand for new homes."
Tucson has struggled in the past to overcome the effects of the recession, but in 2016 the city saw the strongest growth since 2006. This is in part thanks to the 2.8% growth in jobs, along with more renters transitioning into the home buying market.
Keep in mind that the recovery is not yet over. This is only the beginning. To continue reaping the benefits of the recovery, Tucson's growth will need to continue in population, new homes, new jobs, and the residential resale market. Finding a new home to purchase is currently very competitive due to a large demand and low supply.
By the end of 2018, the Tucson area is expected to gain more than 5,000 jobs in private education and health care, about 3,500 in the hospitality industry and nearly as many in professional and business services. The mining industry, hurt by the global collapse in copper prices, is expected to continue cutting jobs in the near-term.
"A healthy homebuilding sector and housing market is important for our community, because it signals our economy is moving in the right direction," said David Godlewski, president of the Southern Arizona Home Builders Association. "Plus, new homes mean more new jobs and more revenue to local jurisdictions to invest in parks, roads and public safety."
Capital Fund 1, based in Scottsdale, Arizona, is a direct private lender. It underwrites and services loans in-house which gives the client an accelerated response time. For more information on Capital Fund 1, please go to http://CapitalFund1.com.
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SOURCE Capital Fund 1