Greater Phoenix Rental Market Data by City 2015 vs. 2014 and 2013 for September,October and November - Redux

On the last post, we took a look at the city of Phoenix, AZ and the Valley Vista subdivision's 2013 to 2015 pertinent rental market figures.

This week we will look at the same data but just look at some line charts that re-emphasize increase in rental price and decrease in rental inventory. These charts will show a graphical picture of the data for the following cities.

Surprise (SUR)

Phoenix (PHX)

Peoria (PEO)

Avondale (AVD)

Buckeye (BUK)

Keep in mind, the rental property data we use in this comparison is objective data that will look at focuses on closed, unfurnished rental properties and is taken from the Arizona MLS.

We will present two charts. The first chart shows raw rental price per square foot in each city. 

In each city, the rental price per square has gone up pretty consistently in each year and rental price per square foot increase ranges from 11% to 15%

The next chart shows rental property inventory.

This chart details the significant reduction in rental properties available and also shows that the Phoenix rental property inventory is greater than the rest of the cities inventory combined.

Greater Phoenix Rental Market Data by City 2015 vs. 2014 and 2013 for September,October and November

On the last post, we took a look at the city of Phoenix, AZ and the Valley Vista subdivision's 2013 to 2015 pertinent rental market figures.

This week we will take another look at the Greater Phoenix Rental market data and look at the three charts that break down by city in a few categories. The cities are as follows:

Surprise (SUR)

Phoenix (PHX)

Peoria (PEO)

Avondale (AVD)

Buckeye (BUK)

We will focus on the rental homes that rented between September, October and November and break down the resulting rental data by year. By doing this, we get a great look at how the Greater Phoenix and West Valley 2015 rental market performed vs. the 2013 and 2014 rental market specifically within these three months.

The rental property data we is objective data that will look at focuses on closed, unfurnished rental properties and is taken from the Arizona MLS.

We will present three charts. The first chart shows raw rental price per square foot in each city. 

In each city, the rental price per square has gone up pretty consistently in each year and rental price per square foot increase ranges from 11% to 15%.

The next chart shows rental property inventory.

This chart details the significant reduction in rental properties available and also shows that the Phoenix rental property inventory is greater than the rest of the cities inventory combined.

The final Chart shows the increase in rent price/decrease inventory as a percentage

This one shows good rental market price gains as a whole. The most interesting thing shown is the drastic reduction in rental inventory on the Arizona MLS from 2013 to 2015.

 

Phoenix, AZ and Valley Vista Rental Property Market Comparison from January to November for 2013,2014 and 2015

On the last post, we took a look at the Avondale, AZ  rental market and the subdivision of Coldwater Springs.

This week, we will take a look at the City of Phoenix and the numerous listings within this large area.

We will focus on the subdivision of Valley Vista in Phoenix as the secondary layer to this rental market evaluation.

The Valley Vista subdivision is located roughly south of Cactus Rd.  and north of Peoria Ave. The Valley Vista, Phoenix subdivision is east of I-17 west of 19th Ave. 

All of our Phoenix rental market figures are taken from closed rental data from the Arizona MLS from 2013-2015.

We will focus on the rental homes that rented between January and November and break down the resulting rental data by year.The property data we will look at in this objective Phoenix rental market review and Valley Vista rental market price overview focuses on closed, unfurnished rental properties.

The rental market numbers in Phoenix and Valley View are interesting. Attached is our summary chart.

The most interesting thing to observe is the size of the Phoenix market. The 7113 properties that have been rented in 2015 is almost two thousand units above the last six cities we reviewed 2015 numbers. The cities of Buckeye, Avondale, Goodyear, Surprise, Peoria and Glendale together have rented 5,171 home in 2015 through October 31.

The average rental home price gain for the above time period in Phoenix, AZ was a solid 5.9%. For the houses in Valley Vista, the three year rental price is much bigger but it appears that this is due to a large number smaller homes being sold in a small sample size. 

The price per square foot gain was small in both comparisons.

The rental market inventory decrease over the last three years Phoenix was 32%. The decrease in Valley Vista rental property inventory was the same at 32% although the sample size was smaller.

Buckeye, AZ and Encantada Estates Rental Property Market Comparison from January to October for 2013,2014 and 2015

On the last post, we took a look at the Avondale, AZ  rental market and the subdivision of Coldwater Springs.

This week, we travel down the I-10 West and will take a look at Buckeye, AZ and the subdivision of Encantada Estates.

Encantada Estates is a subdivision that is roughly located south of the 85 and north of Beloat Road. Encantada Estates is east of Rooks Rd. and west of Miller Rd. 

All of our Buckeye rental market figures are taken from closed rental data from the Arizona MLS from 2013-2015.

We will focus on the rental homes that rented between January and October and break down the resulting rental data by year.The rental property data we will look at in this objective review of the Buckeye and Encantada Estates rental market focuses on closed, unfurnished rental properties.

The rental market numbers in Buckeye and Encantada Estates are very similar. Attached is our summary chart.

The average rental home price gain for the above time period in Buckeye, AZ is a solid 12.2%. For the houses in Encantada Estates, the three year rental price is similar to Buckeye as a whole at 10.2%. However the sample size for the rental properties at Encantada Estates is very small.

Both areas of comparison had more of a gain when compared to rental price per square foot (Buckeye - 15.6% , Encantada Estates - 18%).

To compare the Buckeye rental market gains with the overall Phoenix area rental market gains in 2015 check out our post from September 21.

The rental market inventory decrease over the last three years in Buckeye was 28% which is less than other West valley cities analyzed. The decrease in Encantada Estates was 50% although the sample size is small.

Avondale, AZ and Coldwater Springs Rental Property Market Comparison from January to October for 2013,2014 and 2015

Last week, we took a look at the Goodyear, AZ  rental market and the subdivision of Canyon Trails.

This week, we travel down the I-10 a bit to the the East and will take a look at Avondale, AZ and the subdivision of Coldwater Springs.

Coldwater Springs is a subdivision that is roughly located south of I-10 and north of Lower Buckeye Road. Coldwater Springs is east of the Agua Fria River Rd. and west of Avondale Road. 

All of our Avondale rental market figures are taken from closed rental data from the Arizona MLS from 2013-2015.

We will focus on the rental homes that rented between January and October and break down the resulting rental data by year.The rental property data we will look at in this objective review of the Avondale and Coldwater Springs rental market focuses on closed, unfurnished rental properties.

The rental market numbers in Avondale and Coldwater Springs are very similar. Attached is our summary chart.

The average rental home price gain for the above time period in Avondale, AZ is a very respectable 9.5%. For Coldwater Springs, the three year rental price gain mirrors Avondale as a whole at 9.2%. Both areas of comparison had less of a gain when compared to rental price per square foot (6.8%).

To compare the Avondale rental market gains with the overall Phoenix area rental market gains in 2015 check out our post from September 21.

The rental market inventory decrease over the last three years in Avondale was very significant at 42%. The decrease in Coldwater Springs was even more drastic at just over 50% 

Goodyear, AZ and Canyon Trails Rental Property Market Comparison from January to October for 2013,2014 and 2015

Last week, we took a look at the Surprise, AZ  rental market and the subdivision of Greer Ranch.

This week, we will take a look at Goodyear, AZ and the subdivision of Canyon Trails.

Canyon Trails is a subdivision that is roughly located south of I-10 and north of Lower Buckeye Road. Canyon Trails is east of Citrus Rd. and west of Sarival. 

All of our Goodyear rental market figures are taken from closed rental data from the Arizona MLS from 2013-2015.

We will focus on the rental homes that rented between January and October and break down the resulting rental data by year.The rental property data we will look at in this objective rental market overview of Goodyear and Canyon Trails focuses on closed, unfurnished rental properties.

The rental market numbers in Goodyear and Canyon Trails show some pretty interesting trends.

The average rental home price gain for the above time period in Goodyear, AZ is a solid 11.8% and 8.3% by $ per sq. foot. For Canyon Trails, the rental price gain was less at 7.3% but almost double that in $ per square foot gain with a 15.4% increase. 

To compare the Goodyear rental market gains with the overall Phoenix area rental market gains in 2015 check out our post from September 21.

The rental market inventory in Goodyear decrease was almost identical to the Surprise rental market inventory drop at 37% from 2013-2015 according to the rental market numbers chart above.

Surprise, AZ and Greer Ranch Rental Property Market Comparison from January to October for 2013,2014 and 2015

Last week, we took a look at the Peoria, AZ  rental market and the subdivision of Crystal Creek.

This week, we will take a look at Surprise, AZ and the subdivision of Greer Ranch.

Greer Ranch is a subdivision is located south of Grand Avenue and 83rd avenue. It is east of Reems Rd. and west of Sarival Ave. It is north of Peoria Ave and west of Cactus Rd. 

The adjacent Surprise subdivisions to Greer Ranch are Rancho Gabriela, Twelve Oaks Estates and Sycamore Farms.

All of our Surprise rental market figures are taken from closed rental data from the Arizona MLS from 2013-2015.

We will focus on the rental homes that rented between January and September and break down the resulting rental data by year.The rental property data we look at from Surprise and Greer Ranch focuses on closed, unfurnished rental properties.

The rental market numbers in Surprise and Greer Ranch show growth in rental price and a steady drop rental home inventory from 2013 to 2015. The chart below displays the details.

The average rental home price gain in Surprise, AZ is 7.4% and 12.2% by $ per sq. foot. This is a little less than the average home price gain Valleywide during the same time frame. For details on Phoenix area rental market gains in 2015 check out our post from September 21.

The rental market inventory decrease was a hefty 37% in Surprise, AZ from 2013-2015 according to our Surprise rental market numbers chart.

Peoria, AZ and Crystal Cove Rental Property Market Comparison January to September 2013 to 2015

Last week, we took a look at the Glendale rental market and the subdivision of Village Rose.

This week, we will take a look at the neighboring community of Peoria,AZ and the small subdivision of Crystal Creek.

Crystal Creek subdivision is located south of Grand Avenue and 83rd avenue.

All figures are taken from closed rental data from the MLS from 2013-2015.

We will focus on the rental homes that rented between January and September and break down the resulting rental data by year.The rental property data we look at from Peoria and Crystal Creek focuses on closed, unfurnished rental properties.

The rental market numbers in Peoria show growth in rental price and a steady drop in Peoria rental home inventory from 2013 to 2015. The chart below displays the details.

Overall, average rental property prices in both Peoria and Crystal Creek have increased during this 2013-2015 time period.  

Although our comparison sample size for Crystal cove is small, Average and Median days on market have both gone down here in over the last three years. We recently leased a property in Crystal Cove in less than a week.

However, the average rental home price gain in Peoria, AZ is only about 5%. This is much less than the average home price gain Valleywide during the same time frame. For details on Phoenix area rental market gains in 2015 check out our post from September 21.

The rental market inventory decrease is 27% in Peoria, AZ from 2013-2015 according to our Peoria rental market numbers chart.

Glendale, AZ and Village Rose Subdivision Rental Property Market Comparison January to September 2013 to 2015

This week we will take a look at the Glendale rental market and the subdivision in our focus will be Village Rose. 

Village Rose is a Glendale, AZ subdivision located east of 67th avenue and South of Cactus.

All figures are taken from closed rental data from the MLS from 2013-2015.

We will focus on the rental homes that rented between January and September and break down the resulting rental data by year.The rental property data we look at from Glendale and Village Rose focuses on closed, unfurnished rental properties.

The rental market numbers in Glendale and Village Rose in this study show decent gains as detailed below.

Overall, average rental property prices in both Glendale and Village Rose have increased during this 2013-2015 time period.  The average rental home price gain in Glendale, AZ is about 9% and the Village Rose subdivision are about 11% over these three years. 

Rental property inventory has decreased in both spots as well. The rental property inventory decrease on the ARMLS has been a substantial 36% in Glendale, AZ from 2013-2015.

Litchfield Park Makes TOP 10 Best Phoenix Suburbs!!!

With a population of a little over 5,000 people, Litchfield Park is the only city in the west valley of metro Phoenix to make it into the top 10 best phoenix suburbs list (according to MOVOTO).  It is a very small close knit community with tons of amenities and it is near Luke Air Force Base.  Litchfield Park also offers a wide variety of housing options from single family homes in community developments with home owner's associations to condos, apartments and single family homes on large lots without home owner's associations.  Litchfield Park also averages an unemployment rate of 3.7% which is lower than Phoenix's overall unemployment rate of 5.0%.  The wigwam resort also resides in Litchfield Park and offers many restaurants and golf courses for a staycation or for visitors. For more information about this quaint Phoenix suburb visit their visitor page at http://www.litchfield-park.org/

Follow @rpmwvphoenix

Is it the right time to buy an investment property in North Phoenix? - Updated analysis

Last week we took a look at a potential investment property in Phoenix and did a cost/return breakdown . This week we will continue our investment property analysis and focus on a North Phoenix property.

The property we are looking at today is for sale in the Phoenix subdivision of La Crescenta. La Crecenta is a condominium subdivision just north of the 101 at 7th Ave.

The property that we are looking at is at 421 W. Yukon Drive #2 . It is currently listed at $95,000. Let's take a look at the basics of a five year investment.

Sale price= $92,000 (you probably can get a 3% reduction off the list)

Turnover= $5,000 includes new paint and carpet

Marketing Costs= $400 for tenant placement services from RPM West Valley

Rent=$795 per month

Maintenance Reserve=$5,000

Property Specifics

Sq Ft 863

2 BDR 2 Bath

101 and 7th Ave. - RPM Property Owners have had good results with tenant duration and pay history in this subdivision.

Ok, so you plunk down $103,000 which includes the sale price, a pretty decent turnover budget and hiring a company to lease it for you. At this price, it should conservatively rent in a month and you have a pretty high percentage of keeping it occupied for at least two years (just a bit less than the average tenancy projection for this location).

First two year return= $795*13=$10335/2 = $5,168 - $389 tax (annual) - $300 insurance (annual) $1620 HOA fees (annual) =  = 2.7% ROI annualized

Next three years= $850 *35 (one month to re-rent and realistic rent increase) -$1400 (turnover & marketing costs from first tenants and to re-rent to second tenancy) = $28350 - $1167 taxes (3 yrs) - $1000 insurance (3 yrs)- $4860 3 yr HOA fees with projected increase = $21,323

Annualized return pre-sale =$24,176 revenue /5  yrs / $103000 outlay = 4.6% ROI per year.

So lets say you sell the home after 5 years, there is  good chance it will increase in value. Let's assume the price will go up 2% per year (a very conservative estimate judging by today's market figs).  You will get $99,500 at the end.

5 year Revenue-Expenses = ($7,500 sales gain + $24,176)= $31,676

Initial Expenses=  $103,000 initial outlay 

=30.7% ROI

This assumes your 5K maintenance reserve will be exhausted over the five year's of tenancy and does not include any tax advantages or disadvantages. The market rent and appreciation numbers or conservative and based on present and historical facts of the Phoenix rental market.

There are some interesting things to note about this investment property example in La Crescenta compared to the example from last week in the Pines. Although you are paying much more per sq. ft and more per sq. foot in relation to the rent for this one, you get a break in the taxes and the HOA costs as well as greater projected appreciation so that the investment return is just a bit better. 

Is Now the time to Buy a Rental Property in Phoenix - Pines Unit Subdivision ?

Last week we took a look at the Greater Phoenix Rental market data and broke it down by city in different categories. This comparison showed the rental market patterns in Phoenix over the last three years

All of the data was good for landlords. Rental prices have gone up Valley wide and inventory is down. This is resulting in many less vacant days while waiting for a renter.

So is it a good time to buy a rental property in the Phoenix market now? Perhaps, but while the rental market has been getting better over the last three years, the price of buying a home has also gone up.  

Over the next few posts, we will take a look at whether buying a rental property makes sense. We will focus on specific subdivisions and "run the numbers". At least the basic numbers to see if further investigation is warranted. 

We will take a look at actual and current for sale properties. So if you keep reading you may want get a started with being a landlord.

The property that we are looking at is at 14002 N. 49th Ave. #1020 in the Pines Unit subdivision. It is currently listed at $82,300. Let's take a look at the basics of a five year investment.

Sale price= $79,000 (you probably can get a 3% reduction off the list)

Turnover= $5,000 includes new paint and carpet

Marketing Costs= $400 for tenant placement services from RPM West Valley

Rent=$750 per month

Maintenance Reserve=$5,000

Property Specifics

Sq Ft 842

2 BDR 1 Bath

T-Bird and 49th - Pretty good location for renters

Ok, so you are out $89,400 which includes the sale price, a pretty decent turnover budget and hiring a company to lease it for you. At this price, it should conservatively rent in a month and you have a pretty high percentage of keeping it occupied for at least two years (just a bit less than the average tenancy projection for this location).

First two year return= $750*13=$9750/2 = $4,875 - $520 tax (annual) - $300 insurance (annual) $1,848 HOA fees (annual) = $2,207 = 2.4% ROI annualized

Next three years= $800 *35 (one month to re-rent and realistic rent increase) -$1400 (turnover & marketing costs from first tenants and to re-rent to second tenancy) = $26,600 - $1,650 taxes (3 yrs) - $1000 insurance (3 yrs)- $6000 3 yr HOA fees with projected increase (these are painful)= $17,950

Annualized return pre-sale =$20,157 revenue /5  yrs / $89400 outlay = 4.5% ROI per year.

So lets say you sell the home after 5 years, there is  good chance it will increase in value. Let's assume the price will go up 2% per year (a very conservative estimate judging by today's market figs).  You will get $85,512 at the end.

5 year Revenue-Expenses = ($6,512 gain + $20,157)= $26,669

Initial Expenses=  $89,400 initial outlay 

=29.8% ROI

This assumes your 5K maintenance reserve will be exhausted over the five year's of tenancy and does not include any tax advantages or disadvantages. The market rent and appreciation numbers or conservative and based on present and historical facts of the Phoenix rental market.