The Phoenix real estate market is dynamic and ever-changing. This year has been a strong market for sellers and landlords; February shows the average price of a Phoenix home at $245,208, reflecting an increase of nearly 5% over the same time last year.
Prices are expected to continue climbing this year, with Realtor.com predicting Phoenix will be the #1 housing market for growth in 2017. Home prices and rental rates are rising, providing investors with good returns on their investments.
According to Lloyd Tindell, Designated Broker and owner at Shield Property Management in Scottsdale, rates have increased 97% on their lease renewals — with 88% of tenants choosing to renew their leases. “Typically, we usually think to buy when prices are trending down,” Tindell says. “However, the strong demand for rental properties is pushing rental rates higher, which translates to higher return for property investors.”
Here are some tips for finding the best investment property deals in this booming market:
Find a Broker You Can Trust
A real estate broker can help you sort through listings, as well as schedule showings. He may also have access to private listings, or pocket listings that will be coming to the market soon. “You want someone with extensive local experience working in the area you’re looking in, and who has expert negotiation skills,” says Tindell. “Your broker can email lists of the properties that meet your criteria, so you can get in quickly and make an offer.”
Scout the Net
Online housing searches can be your best friend, or your worst nightmare. Your broker can verify the availability of a property in real-time, which maximizes the efficiency of your time. Note that most search sites require you to provide personal information or sign up for newsletters, etc.
Know Your End Goal
As the owner of a property management company, Mr. Tindell occasionally encounters investors that don’t always have a solid exit strategy in place. With each property, it’s important to have an established goal prior to investing.
If you’re serious about buying in today’s market, try thinking outside the box. Visit open houses, drive through your target neighborhood looking for private sales, and contact your broker immediately for up-to-the-minute market information on houses you find. Also, ask friends, relatives and work peers if they know of anyone looking to sell.
According to Tindell, unfurnished properties in Scottsdale, Chandler and Gilbert are outperforming seasonal, furnished properties by a wide margin. With market demand pushing rental rates higher, now is an excellent time to purchase your first property or add to your current portfolio with your next investment property.
If you’re looking to buy or sell an investment property, or set up property management services, contact Lloyd Tindell directly at 602-619-9889 to make an appointment.