Sunday, January 15, 2017

Phoenix Real Estate Update. Show me the money.

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 Phoenix Real Estate Update. Show me the money.

By: Payam Raouf
Designated Broker

I don’t want to be misleading but I have to be honest, this is a tough market to predict. I have over 70,000 readers and in the past 10 years this is the first time I am going back to the basics!!!!

Overall, rents and home values have substantially gone up  throughout the valley in the past 6 to 12 months and you never know what the BEST price to buy, sell or rent is till you do extensive research and try it out. 

I would not rely as much on Zillow, Trulia and other zestimator web based real estate companies to figure out the true value of my properties as I would on MLS. On MLS, you can get down to the differences or similarities of all the homes that were sold in the past six to 12 months. Take EVERYTHING into consideration,  the floor plan, subdivision, the  builder etc, etc, etc. Then you must go see the house, drive the neighborhood maybe even pull over talk to a resident or two... to come up with as close as a market value you feel is right and up that by a reasonable percentage just to be safe. Of course you MUST take into account the buyers/sellers or tenants it may attract and have your marketing plan A, B and Cs in Place. 

It is such a mixed market, some of our investors are selling and quite a few are buying!!!  Most of the ones selling are the ones that were upside down in the past 7 to 10 years on their mortgages.  The ones buying are pretty solid investors. They are buying location, location, location! Homes in the mid 2500 to 3000 sq ft with all amenities in $275000 to $400000 range. N Peoria, N Phoenix, Gilbert, Chandler, Scottsdale are among a few to mention.

The other group buying homes are the first time home buyers or tenants who have been  renting for the past 5 to 6 years. They have got the home prices in the $150000 to $275000 going through the roof.  30% of tenants are buying homes and the same ratio of landlords seem to be selling as well. There are a lot of grants available for the first time home buyers and sellers make a decent contribution towards their closing costs.

Too many apartments are either build already and or are in the process of and that market is not looking as good right now. It looks like rents are leveling off and are heading down a bit from their highs. On the other hand, with 30% of investors selling and the lack of affordable single family homes, many tenants see apartment living specially the new ones as an alternative and that may level things off or even raise the rents in the future. We will see.

Older buildings in the central Phoenix may not be the best rentals but may be good flips. Downtown Phoenix, Tempe, Arcadia Area, Scottsdale are in play to name a few. If you can find a deal and have the right contractor to team up with, go for it otherwise, be careful. That market is softening a bit as prices have skyrocketed and real comps are hard to get.

We have managed up to 1600 properties throughout the valley in the past nine years and as a hands on Owner/Designated Broker, my team and I can help you accomplish any residential real estate goals you may have throughout the valley. We can help you buy, remodel/fix, rent/lease, maintain/manage and sell your properties. Please either give me a call directly at 1-888-777-6664 ext. 111 or give me your information and ask me any specific questions you may have. I will be happy to share my thoughts with you. Thank you for your business.

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Realtor.com: Phoenix will be No. 1 housing market in 2017

 Catherine Reagor , The Republic | azcentral.com 

Real estate website predicts Valley home prices to climb 5.9 percent, and sales to jump by 7.2 percent next year; LA is No. 2

Drum roll please….
The top housing market in the U.S. in 2017 will be metro Phoenix, according to a new realtor.com
forecast.
It’s about time.
The Valley’s steady growth in sales and price increases, tighter new home market and short supply of foreclosures make it one of the healthiest in the country. Plus a wise housing analyst who tracks home sales and trends every day told me last year that 2017 would be the big year for the Phoenix-area housing market. Realtor.com, a national real estate website, is predicting Valley home prices to climb 5.9 percent, and sales to jump by 7.2 percent next year. That’s not the biggest projected price increase on its list of top 10 markets in 2017, but it’s the biggest sales increase.

It makes sense since one of the Valley’s top selling points for buyers is more affordable home prices, particularly in the West. And that’s the intro for Los Angeles, which ranked No. 2 on the list with a predicted 6.9 percent rise in prices and 6 percent increase in sales. Two other cities in the West, Sacramento and Riverside made the top five for housing market gains. All are pricier to buy a home in than the Valley.

There's also good news for Phoenix’s southern neighbor Tucson. The real estate group ranks it as the ninth best housing market in 2017 with an expected 6.1 percent jump in prices and 5.5 percent gain in sales.

Call For a Free Property Management Quote:
 (888) 777 6664
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