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Phoenix Factoids

Rents Declining?

Rents in Phoenix haven’t increased in months… but they went up a ton last year.

“The ARMLS database suggests rents are already on a declining trend. The average lease list price per sq. ft. was $1.69 yesterday. It was $1.98 this time last year.”

– Mike Orr at Cromford Report, April 4

Investors are driving the market. What do they do if they see rents fall?

Nevertheless, the median new lease price went up $565/mo from Q1 2020 to Q1 2022. That’s sucking a LOT of money away from the rest of the metro Phoenix economy.

We’re at 2030 Prices?

From 1990 to 2020, metro Phoenix house prices increased an average of ~4% a year.

From 2020 through 2021, prices increased ~50%. That’s equivalent to about 10 years of appreciation at 4% appreciation/year. So, in a way, we’re at 2030 prices today.

“As rates quickly approach 5%, we expect their impact on homebuyer demand to change from a motivator—driving a sense of urgency to buy before rates rise further—to a deterrent—causing buyers to step back as the cost of homebuying exceeds their budgets.”

– Redfin

Nice way to explain it!

I guess Casa Grande is already hot but Arizona has a lot of smaller towns that would be great places to live.

Click on the graph 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.