Saturday, March 12, 2016

Inventory for sale is low, demand is high and prices are holding steady but rents are going up.

Arizona Property Management & Investments
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3/12/2016
BY: Payam Raouf
Designated Broker


Inventory for sale is low, demand is high and prices are holding steady but rents are going up.

Market is moving at a moderate pace. More tenants and first time home buyers are purchasing homes. Cali-vestors are back at it as they get more bang for their buck in Arizona. Not much flipping is going on. Margins are not simply there.

There is a shortage of rental homes throughout the valley. Rents have gone up considerably and homes prices are holding steady in most areas. It looks like market is leveling off.

Multi-Family sale prices have skyrocketed. As they are a more affordable alternative to single family home rentals.

Inventory of single family Homes for sale is low. We are hovering around 18500 (3/12/2016) active homes for sale on MLS. For a city the size of Phoenix Metro, normal is around 35000. This has made the condo prices go up substantially.

Many investors are holding on tight hoping the shortage is going to help the rents and home prices to  higher.  One good indication that home prices have reached their peak is when condo prices per sq ft get close to home prices in the same neighborhood.



Arizona Property Management & Investments
Call For a Free Property Management Quote:
 (888) 777 6664
A+ rating with BBB/ Honor Roll List with ADRE