Happy July! Happy Independence day here in the states on July 4th & Happy Canada day up north on July 1st!
Our real estate market continues to sizzle along with our weather in the Phoenix area… prices are up about 35% since this time last year, making the Phoenix real estate market one of the hottest areas in the country.
Here’s a little little indication of some of the frenzy that’s going on in our market from The Cromford Report on June 19th:“We have a new contender for the greatest number of offers for a single listing. This time it is a normal listing in Glendale 85308 (not an REO in Chandler like the previous champion). MLS # 4745038 was listed at $119,900 and received a total of 95 offers, finally selling for $140,000 cash. Among the 95 offers, 38 were all cash, 28 were conventional and 28 were FHA/VA. 51 offers came from investors and 44 from owner occupiers. The home is already listed for rent at $1,200 per month by the winning investor.”
There is still a great opportunity to buy and hold properties for positive cash flow here in Phoenix – fix and flips remain an extremely competitive market and tricky to located deals. They are out there and most investors are having a bit of luck buying at the foreclosure auctions or Trustee Sales.
Here are some great articles that we’ve compiled from different news sources this month that may be of interest to you.
- The Tax Rules For Renting Out Your Vacation Home – From the Wall Street Journal
- Shadow Inventory Drops To Record Lows – Realtor Magazine
(I still believe that we do not have a shadow inventory “problem” here in Phoenix – because of our extremely low supply of inventory… there would have to be a MASSIVE amount of homes coming on the market all at once in order to hurt us. We still have a lot of active Buyers and Investors looking to purchase homes. My two cents on that subject.)
- Which Home Improvements Pay Off The Most – HGTV.com
(More of consumer news but still important for investors looking to spruce up some homes. Make the home functional and put your investments in the kitchen and bathrooms.)
- Another real estate article has appeared in a global business magazine – Fortune. Poorly researched and based on invalid preconceptions, this is a good example of journalism that ignores the hard facts and goes for sensational presentation instead. It misrepresents the nature of the market in Phoenix and irresponsibly repeats the hoary old myth about bank owned inventory. The only redeeming thing I can think of to say about Fortune’s coverage of real estate in recent years is that is is not quite as inaccurate as Forbes. If you want to read well-researched and generally accurate articles about the Phoenix real estate market then my recommendation would be BusinessWeek (John Gittelsohn) or Bloomberg News (Prashant Gopal). – From the Cromford Report
For all your real estate market investment needs: buying, selling, remodeling or property management… contact us at firstname.lastname@example.org or 480.442.9809 and we’ll be more than happy to help.