28
Dec

The Phoenix Real Estate Market is Hot… And We Don’t Just Mean the Weather!

Now is one of the best times in recent history to invest in Arizona real estate.  Home prices and mortgage rates are at the lowest points they’ve been in decades.  Additionally, the large number of people who’ve recently been foreclosed on has created a vast pool of potential tenants.  If you’re prepared for a long-term hold and you invest wisely, your investment will pay off when the market returns.  And in the meantime, you can achieve positive cash flow with a rental home.

As Warren Buffet once said, “be greedy when others are fearful, and fearful when others are greedy.”  When the market is bad and the economy is suffering, wise investors step in to grab up the deals.

As a potential investor, you may be asking yourself, “Why Phoenix?”  The answer is not just the weather!  The lifestyle and outdoor recreation activities, potential educational and career opportunities, and our competitive real estate market are all excellent reasons to consider Phoenix.  Did you know:

  • 31% population growth in Phoenix over the last 10 years; 58.5% projected growth for the next 22 years, according to the US Census Bureau
  • $1100 median rental rate
  • 3 weeks– average time a rental property stays on the market
  • 55% drop in housing prices in the last few years– Phoenix is on sale!
  • $120,000 current median home price, nearly $60,000 less than the national median
  • Double digit cap rates achievable on many properties
  • 6.25% lower cost of living compared to US average
  • 8.25% unemployment, compared to 10.2% US average
  • 334 days of sunshine a year– did we mention the weather?

Whether you’re ready to dive in or you just want more information about adding to or creating an investment portfolio, consider talking to a Phoenix investment specialist.    Way too many people get the right idea, choose to invest in a rental property, and even get a great deal… but on the perfectly WRONG house!  Without a professional knowledge of the area and the local rental market, most investors make costly mistakes.

Check back next week for advice about purchasing from the trustee’s auction.

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