Investor, Investor... Where Are You?

We are seeing a decrease in the number of offers from real estate investors.
Why?
The type of real estate investor in AZ is changing.
1) The get rich quick investor, known to most as a flipper, has moved on to greener pastures in other states.  Just as vultures migrate, so does the flipper. They have moved on to states that are promising higher returns on investment, such as Florida and Texas. 
2) The new investor in AZ is buying and holding.  This investor is seeking more stability.  This investor is tracking where people are moving, where job markets and growing and where home prices are most stable.   AZ's job market is growing and AZ prices are still relatively low so investors are still buying rental properties.

While the fast acting flipper investors did help heal the AZ real estate market, the new breed of investor will sustain it.

Real estate continues to be America's second favorite investment....second only to cash.  With prices low and mortgage rates also historically low, it is an excellent time to invest in rental properties in AZ and to re-enter the real estate market if you have been watching from the sidelines.

Phoenix Real Estate Forecast.... PARTLY SUNNY!

According to the experts of the National Association of Realtors, NAR, the strength of the national real estate recovery remains in question. Here in Arizona, our housing prices are still reacting to an inadequate supply of homes for sale. However, the NAR is concerned that the pace of recovery will slow due to difficulty in obtaining housing due to weak income growth and greater lending restrictions.

According to the Bureau of Labor Statistics, the unemployment rate fell to 7.4% in July, but more importantly, average hourly earnings and average weekly hours worked decreased. The unemployment rate is actually closer to 15% if we add in those workers who are underemployed.

For the 1st time since November 2012, home listing prices decreased nationally from June '13 to July '13. Rising mortgage rates, growing inventory and declining investor demand lead to this dip in prices. However, looking at the bigger picture, asking prices are still strong rising 11% from July '12 to July '13. In addition, the NAR reports that the housing affordability index showed housing is still very affordable.

Looking at RENTS for July '13, Trulia reported an increase of 3.9% in rental rates from July 2012 to July 2013 nationally.. However, like home sale pricing, rental rates also seem to be leveling.

So, if you were waiting for home prices to level off before putting your home on the market, now is the time. And, if you are a buyer, now is the time to take advantage of the historically low mortgage interest rates.