Hi Friends!
This is your Hard Money Lender in Tucson and the Southern Arizona area, Billy A with some important information from my friend Beth Jo Zeitzer at ROI Properties. Their reports indicate that despite a supply-demand index showing a decreased advantage for sellers, they remain in a power position (with exception of the higher end). Appreciation rates in the Phoenix metro area should stay positive in the short term, with the highest returns in the smaller and more affordable home markets. You can read all the details in the attached R.O.I. Properties “Real State – Residential” newsletter, with additional statistics, market trends and information, but here’s a quick view of the highlights:
- Week 43, 2015 vs. 2016: Residential sales in 2016 are up 4.3% compared to the same week last year. Sales under $175K continue to decline, while sales between $175K-$500K increased significantly over the past 5 weeks. There was some good news in the high end of the market: Sales in the $1M-$2M range were up 1.1% over last year, and the over-$2M market price per square foot has grown from $426/s.f. last May to $439/s.f. as of this month.
- Fix-and-flip returns: Recent numbers show an 80% increase in monthly flip sales and the median return for properties acquired and sold within 180 days is 28% as of August 2016. Higher returns can generally be found close to emerging employment centers and freeways, but where are the top returns by dollar and percentage? Read and find out!
- Poll watching: The election is on everyone’s mind, including the impact on interest rates and consumer confidence. Regardless of how consumers feel about the future, the present situation tells us that Phoenix metro listings in escrow are up 12% over this time last year, the annual sales price per square foot is up 5.3%, and marketing times have barely budged—all positive news for sellers.
- Behind the numbers: Job creation, income, and affordability affect real estate demand—since the more people participate in the labor force, the more they earn and can afford. With the decline in labor force participation rates, how concerned should we be about our country’s changing demographics?
If you are interested in getting more information on commercial real estate, you can send Beth Jo an email to subscribe to her “Real State – Commercial” October ROI Newsletter
Well, that’s it for this time! Make it another great day!
Blessings,
Billy A
P.S. If you or someone you know is struggling to obtain financing or just wants to “Brainstorm” and receive “Great Information Without Obligation” on any aspect of real-estate, including leverage – Please don’t keep me a secret!
Give me a call at 520-299-4878. As a Creative Lender, my team and I have been providing Meaningful Alternatives to traditional lending for over 30 years!