Phoenix Arizona Home Price Report for January 2012 - A Changing Market

[DianaC]

Hello Fellow REIN members;



The market in Arizona has certainly changed. I just listed one of my investment houses 10% over what I thought I could receive....and received a full price offer.



I am now purchasing multi-family buildings. Have offers in on two buildings - 74 units and 110 units. Cap rates are great, prices are below replacement and vacancy rates are stable. Rents have not risen in the past year due to product on market.



If you want to know more about my activities or would like to work together please call my 800 number or send over an email.



Want to know more about the changing real estate market in Phoenix...read this report. I will post this report monthly onto this site.



The report below is by Mike Orr from the Arizona State University School of Business.



http://wpcarey.asu.edu/finance/real-estate/upload/FullReport_Jan-1202.pdf



Best regards to you all from warm sunny and dry Arizona!



From your transplanted Vancouverite...

Diana Costain

 

[Rickson9]

My Phoenix properties are rebounding in price faster than I expected. The yields are no longer satisfactory for me. I've stopped buying at the end of last year.



It's a shame.

 

[DianaC]

I agree. I also stopped buying single family homes at the end of last year. I have now moved to multi-family buildings with great yields, good locations and good tenant mixes.



There is a silver lining to every cloud!



P.S. For those of you still looking to purchase single family homes...they are still below replacement value but are showing significant price gains. I am taking my sister over to a condo complex to meet a Realtor and she will be buying one of the two units listed. They were listed at $140th, now at $55th, and were at $47th. Most condo listings at this price level are gone within 10 days.

 

[Rickson9]

My experiences agree with Diana. My cash-only offers used to able to secure a short sale or REO. Today, the competition is more aggressive, listings are gone faster, and yields are falling.



I'm glad that I stocked up when I did.

 

[Rickson9]

"As the nation's housing market shows signs of
bottoming after years of declining prices, many first-time buyers such
as Dorado are getting a rude awakening. Instead of having their pick of
homes to buy in some markets, they're losing houses to cash buyers and
bidders with bigger down payments, or they're facing bidding wars
spurred by shrinking numbers of homes for sale.


"The
competition can be most evident for lower-price homes in markets
hard-hit by foreclosure, such as Phoenix, Miami and parts of Southern California, or those with relatively strong economies, such as Washington, D.C., and San Francisco, Realtors say."

http://www.usatoday.com/money/economy/housing/story/2012-06-19/homes-for-sale-chart/55691072/1



Disclosure: I'm still looking... nothing yet... just annoying multiple bids for ridiculous prices...