2016 – Californian Investors Influence Phoenix Property Market
Steve Gregory June 10th 2016
It appears the Phoenix housing market is in a period of sustained, if cautious recovery and that in 2016, a ten year record was broken as April turned into a record month for the buying and rental homes in the Phoenix metropolitan area. Could this have partly been fuelled by the return of investors from California – looking for a greater bang for their buck? It appears so, with both the residential and commercial markets improving. Greater yields are to be had outside of their home territory.
The median monthly gross residential Phoenix rent was at $969 in 2016 and increase from $934 per month the previous year. While this is still around 7% less than the peak of 2008, there are very strong and sustained indicators that the market for rental homes is in a period of growth and we hope longer term stability. Investors are holding tight and hoping that the rent rises will increase as inventory remains low. The latest rental homes and those for sale can be found by clicking the link to Phoenix Quality Homes which also gives direct access to some of The Valleys’ most experienced realtors, all in one place.
We will have a clearer indication, when the next set of Phoenix data will be released in September. 2016 will likely see it to continue the upward trend, as more people are moving into to the Phoenix area and it remains relatively affordable, by US standards.
This was also shown in a recent national survey, which demonstrated Phoenix is one of the top 10 U.S cities ripe for relocation. The survey also showed that despite the growth, it is still one of most affordable areas for home buyers according to data from national mortgage firm, HSH.com.
There are other supporting statistics that support the underlying improvement in the market
Only 231 Phoenix foreclosures took place in April, the lowest level since December 2006, (Source: The Information Market). The good news continues in that home building has continued to increase with a 25% increase since last year.
Home sales increases to 9,041 in May an increase of 8 percent from the previous 12 months Condominium sales increased from the same period in 2014 reached 1,637 last month, up from 1,514 from April 2015.
The median home price increased to $235,000, up around $20,000 from a year ago. The condo price increase was less marked, but still showed a healthy median price of $146,500 from $142,000 a year ago.
While the major indicators of performance are positive, there are factors acting upon the market that we cannot predict and only time will tell the rate and duration of this upward trend, especially in this election year.