Phoenix Real Estate Market – Update
Mike Orr at The Cromford Report made a lot of great observations last week.
- Compared to year ago, single-family detached for rent in MLS… “average being asked to pay 20% less in rent per square foot.”
- “There has also been a 20% increase in the number of rental homes available in Phoenix on the Progress Residential web site over the past 4 weeks.”
- “This appears to be a significant turnaround in the rental market and it does not seem to have been recognized by the media outlets, who are mostly still referring to rising rents. That is so 2021.”
- “… it is conceivable that there is a race to exit the market by the financially-weakest landlords and those with the least appetite for risk. In these circumstances we would see a growing inventory of homes to rent, followed by a growing inventory of those same homes for sale.”
- “If you are over-extended in your real estate investments, I advise a large increase in caution right now.”
- “Do not pay attention to prices. They will continue to rise for many months, since they are trailing indicators of market conditions.”
- “We can keep raising interest rates to slow down the manic real estate market or we can do something else like getting rid of all landlord tax breaks (and increase the home ownership rate at the same time). All for free. In fact, slowing house price inflation this way would actually make money for the government.”
Phoenix Real Estate in the News
Click on the graphs to go to the full-size, interactive version.
This information can vary a lot in different parts of metro Phoenix. Your real estate agent can find the data for your specific city or zip code at The Cromford Report.
2 Responses to First Signs of Big Changes in the Phoenix Real Estate Market
Do you know how the rental rate, and the year to year comparison between the rates for single family homes over the past year is calculated? Which areas are covered and at what price points are the rental homes? I ask because the numbers don’t make sense to me. At today’s rate of 1.63 per sq. foot a 2,000 sq. ft. house would rent for over $3,200. That isn’t right, unless you are only counting high end luxury rentals. Any thoughts you have are appreciated.
I pulled that data from “Rent Check” here, https://armls.com/statistics.
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