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By: Payam Raouf
We are halfway through the year and it’s time again to give you an update. Good news if you are the seller and better news if you are the buyer!
Prices seem to be continuing to go up. If you have to sell, sell. Otherwise, keep renting it. We have less than 2 to 3 months of inventory on mls. No matter how fast builders continue to build, they cannot build fast enough to keep up with the demand. I just checked on mls there is only 12973 single family homes active on the market and 8885 under contract as of 3:24 pm. Do the math. There is not even 2 months of inventory left!!!!
More people moved to Maricopa County than any other county in the country last year, according to U.S. Census Bureau population estimates released March 2018.
Population growth in Arizona is forecasted to be 120,000 new people from domestic and international locations in 2018. If this growth accelerates, we will be expecting over 1.5 to 2 million more people moving to Arizona in the next 10 years. Are you surprised?
Phoenix has seen the job market increase by 3.2% over the last year. Future job growth over the next ten years is predicted to be 40.8%, which is higher than the US average of 38.0%.
Greater Phoenix’s tech sector is experiencing rapid growth, with more and more tech companies locating to the Valley like never before and others being launched here seemingly every week. In the 1980s and '90s, most of the tech jobs in metro Phoenix focused on back office and customer-care centers for companies with headquarters elsewhere. Now, places like Phoenix, Tempe and Scottsdale are buzzing with entrepreneurs and new companies in the tech space.
“We’re beginning to gain a reputation that there’s a real tech community here,” according to Steven G. Zylstra, president and CEO of the Arizona Technology Council.
Our rental inventory mostly consists of Single Family Detached Homes in the $300,000 price range with rents averaging $1850 per month. We cater mostly to upper management of the companies relocating to Phoenix Metro Area. There definitely is a shortage in this niche marketplace.
We see desirable homes suited for our niche market go up to $350,000 to $400,000 soon with rents averaging $2100-$2500 per month. Where else can you get such a return on your investment without risking losing it all? That is not even taking into consideration the historical average real estate appreciation of 6% year over year. In only 10 years, you literally could double your initial investment.
With that in mind, we stay away from homes under $280,000 for now unless it is a great deal. It’s a crowded market with all the fha home buyers.
Our tenants focus on quality of life, good schools and desirable neighborhoods. There are pockets within subdivisions in certain locations of cities we choose to buy that not only offers just that but also have greater potential for future growth.
What is your investment strategy? Are you looking for a steady stream of income? Is someone else being in control of your financial destiny a concern? Or do you prefer to totally be in charge?
Give me a call. Let’s see what else is possible. It's that easy. We do the rest.
Payam Raouf, 623-435-6633 Ext: 111