Wednesday, May 1, 2013

Investors buying homes in metro Phoenix at slower pace

reaching a plateau in home prices in most Phoenix Metro Area. In some areas such as West Wing Mountain in Peoria, home prices have climbed close to what they sold on the top in 2005 and 2006!!!
 
We are receiving more purchase inquires in North Scottsdale Area in the $400,000 to $600,000 price ranges. Many investors who purchased lower end homes are selling to either institutional investors or first time home buyers and replacing those with higher end homes in more desirable areas.
 
It seems, Homes in Ahwatukee, Chandler, Gilbert, N Peoria, North Phoenix and Scottsdale have seen the most increase in prices and  it seems the prices would continue to climb as demand surpasses the supply by far.
 
Surprise might have reached it plateau, Queen Creek, Coolidge, Casa Grande, Buckeye have seen a 20% increase and there is still some room but rents continue to decline as homes are more affordable to purchase than to rent. 
 
City of Maricopa has seen a substantial increase in prices and I think prices will continue to rise as more end users are buying homes and household income and education level is much higher than most cities in Phoenix Metro as well as the well designed master planned communites in this city.
 
For more information about the market condition please contact me directly at info@azezrentals.com or (888) 777-6664 ext 114.
Thank you,
Payam Raouf
Designated Broker
The Republic | azcentral.com Fri Mar 29, 2013 2:13 PM
 
Wall Street funds and other large well-funded investors continue to buy houses in metro Phoenix, even though the pace has slowed as sales prices have jumped.
Some of the early investors, who bought in 2009, have flipped the houses for a quick profit, but most of these buyers are holding on to the properties and turning them into long-term rentals.
David Bignoli, president of real estate data research firm Netvaluecentral Inc., recently complted a report on metro Phoenix’s biggest investors.

Currently, THR Phoenix, also known as Treehouse LLC, owns more than 6,000 houses in metro Phoenix. THR’s house purchases are funded by New York-based international investor Blackstone Group.
Since early 2012, Blackstone has been on a house-buying spree in Phoenix and other markets hit by the foreclosure crisis, including Atlanta, cities in Florida and California since early 2012.

Most of the big residential investors in metro Phoenix are buying in these other markets as well.
Scottsdale-based American Residential Properties ranks no. 2 for house ownership in the Valley with more than 2,700 houses. The firm was started by some former executives of Franchise Finance Corp.
Empire Residential owns almost 1,700 houses in the Phoenix-area. The Scottsdale-based investment group has been around for several years and is led by Richard Felker and Geoffrey Jacob.

The fourth-largest holder of houses in the region is Santa Monica, Calif.-based Colony Capital. The well-known investment group has set up a Scottsdale headquarters for its residential activity. Colony owns more than 1,600 metro Phoenix houses.

Most of these investors rent their houses out, and say they plan to hold them for the long-term and make money on stable rents.

A few plan to package rental houses into publicly traded real estate investment funds sold to other investors.
Another interesting fact to note about many of metro Phoenix’s biggest investors: about half of their houses are listed in property records as owner-occupied.

It will be telling to see what these investment numbers look like in six months. Will these investors stop purchasing metro Phoenix houses in the next six months because of rising prices? Or will some sell their houses in the area because of rising prices?


Home buyers paying cash declining in metro Phoenix


Homebuyers using conventional mortgages outnumbered cash purchasers in metro Phoenix during March.
It’s the first time in four years that cash buyers haven’t dominated the region’s homebuying market, according to the latest Wilcox Report.

Last month, 2,188 houses were purchased with home loans, compared with 2,144 bought with cash.
Fletcher Wilcox, real-estate analyst with Grand Canyon Title Agency, said the gap between cash purchases and conventional-loan purchases had been narrowing in recent months. Most cash buyers are investors, and investment activity has been slowing as metro Phoenix’s foreclosures fall and home prices climb.

In March 2013, 36 percent of Valley home purchases were all-cash deals, compared to 41.5percent in March 2012. Early in the housing crash, during March 2008, 16 percent of the home sales were paid for with cash. At the start of the housing boom in March 2004, 14 percent of all sales were cash transactions.