As a property investor, it’s essential to understand the latest Phoenix real estate market trends to make better investment decisions. Here’s what to consider.
Being a real estate investor involves more than just investing money. Well, that is assuming you want to be a successful investor.
Paying attention to the world around you – the bigger picture – gives you a bit more insight when making investments. It means being able to understand the Phoenix real estate market, market trends, future predictions, and so forth. The more you learn about what is going on, you get a greater sense of when you should make an investment and when to walk away.
If you are an investor in the greater Phoenix area, then there are a few Phoenix real estate market trends you should know about.
As investors, we want to make sure that the area we are investing in is thriving – or has a positive outlook at the very least. And the greater Phoenix area has that. Foreclosure and mortgage delinquency rates are lower than the average nationwide – and so is the unemployment rate. Home prices are going up – and so is the median rent price, coming in at just $1,587. And while this is lower than the national average, it is higher than what it was in Phoenix last year – up by 8.4%.
Looking at the local renters market – especially the rental vacancy rate – is important. If the vacancy rate is too high, it could signal that the demand just isn’t there. But, currently, in Phoenix, that is not the issue at all. In fact, the rental vacancy rate is currently 3.9% – which is lower than the national average and low for the Phoenix metro area, too.
Do you know what that means? It means that for those choosing to purchase a rental property, there is a good chance that you will have no problem renting out your property to tenants, with very little downtime.
With construction costs on the rise and the loss of construction jobs, there is an indication that the construction industry with Phoenix is struggling. It has been reported that costs are up 6.7% and approximately 1,300 jobs were lost.
By looking at the permits, we are able to see that the people of Phoenix want that new construction number to go up. Permits for single-family homes are up immensely. But that’s not all – multi-family properties are on the rise, too. Looks like there could be some positive turnaround for new construction in the near future.
The Phoenix metro area is huge, encompassing some growing areas, too. It is important to take a look around at the areas that appear to be doing well and growing — and find those that are gaining recognition and new residents.
After all, the more growth in a neighborhood, the better chance you may have with your investment. Here are a couple of areas to monitor.
Keep in mind that there are all sorts of neighborhoods throughout Phoenix, as well as in the surrounding areas of Gilbert, Mesa, Peoria, Scottsdale, Tempe and more. You are sure to find what really works well for you, your interests, and your investment style.
Many major industries like to call Phoenix home. And Fortune 500 companies make up a big part of that. With the unemployment rate down, it seems like things must be moving in the right direction. The economy of the Phoenix metro area is propelled by the following healthcare, finance, tech, and retail companies:
The sign of a good real estate investor is one who looks closely at all the opportunities available and all the data that support those opportunities — and then chooses the best choice. You can go anywhere in the world to invest in real estate, but why would you when the market in and around Phoenix is looking so fantastic right now?
There are a lot of opportunities for growth seen with these Phoenix real estate market trends. Lots of space and signs of new construction, a growing population, a stimulated economy, and more.
The future is looking bright for investing in Phoenix and the surrounding metro areas. And, if you decide to take that leap, you will feel confident that you will find the best property management company to handle your investment right here in the local area.
At Real Property Management Evolve, we understand the local Phoenix real estate market and follow the trends closely. So, whether you are interested in investing in rental property in Mesa, Glendale, Scottsdale, Tempe, Phoenix, or the surrounding areas, it is probably a wise decision. We know how successful rental properties are doing right now in the area — and are very optimistic about the future.