Analyze Deals, Maintenance, and Rentals
- Posts 61
- Votes 56
Xổ số vuông hôm nayPhoenix real estate values have increased by a 114% - more than doubling - over the last 10 years according to data from Zillow. That's the third highest-growth rate of any metro in the US, propelling the average price in the metro area up to $315k.
But we've seen this story in Phoenix before, with values climbing only to fall precipitously. Values declined by 60% during the GFC from 2007-12.
Fortunately, I think the fundamentals in Phoenix look to be in better shape this time around. Most notably, the permitting and construction of new homes/apartments is much lower today than it was in 2005. At the same time, population in the metro has grown by 1 million in that span.
What are your thoughts on the Phoenix market? Do you think it's fairly valued right now? Or do you think the market is too hot?
- Posts 37
- Votes 20
Xổ số vuông hôm nayAppreciate the post. I'll let the experienced pros handle this. It's definitely a seller's market. Low supply and high demand. The affordability of housing is relative in the Phoenix, AZ metro.
Think it's starting to become overpriced, but still affordable from my perspective based from my move from Greater Los Angeles, CA. Hope it doesn't continue to rise too much quicker or else it'll price many people out of the market. Looking forward to some thoughtful replys.
- Posts 21
- Votes 15
as we learned in the recession, you can't go wrong in the areas closest to metro Phoenix so long as it's Class A and B areas. What helped build the 60% decline in home prices were the outskirt properties where the communities were more Class C or less communities. That's the real talk because those were the communities of people who were most taken advantage of (includes this Latina - I ended up short selling).
Xổ số vuông hôm nayI think prices are where they should be from a demand perspective in the non-outskirts areas. Phoenix and surrounding cities have a lot to offer economically and people can live here and even work remotely without needing insane amounts of salaries. That's my 2 cents.
- Posts 21
- Votes 8
The pricing of housing goes up and down over the years. If something is overpriced is relatie. I find it best to just analyse the prospective purchase and if you cash flow along with putting aside 5% for vacancy and a % for maintenance (this amount varies between diff investors but I figure in at least 800.00 per property min a yr to put aside). If it cash flows, I go with it. If the interest rates are high I just refi when they go down if it makes sense. That way I can hold onto any property when the price is good or bad. I don't get caught up in emotional bidding wars either. I found some new construction homes that worked for me and the rents are really good right now all around the Phx Metro area so the higher prices are being balanced with the higher rents available at this time.
- Posts 23
- Votes 8
I’m not sure it’s conveying the full picture when saying the values have increased 114% in the past 10 years because that’s going back to the cratered values of the recession (down 60% from 2007-2012). So if the values came down 60% and from there went up 114%...there has been appreciation but no where near the 114% if that makes sense.
Having invested since 2005, one of the main differences between now and back then is financing. Stated income and banks pushing loans back then had everyone buying homes they knew they couldn’t afford. Many thought they could just sell in 6 months and make a quick 15%.
Today has many more checks and balances before being able to qualify for a home/investment property.
I could go on, but I think with good weather/no natural disasters, cheap but more stringent financing, a hot job market, and seeing a number of Californians moving here (along with other out of state buyers), we won’t see anything similar to 2007-12 maybe only a slight decline or flat appreciation if there is a national dip.