Here’s something interesting, a nice bit of good news … According to CNN Money.com, Phoenix is one of the top 10 markets for real estate investment thanks to the low prices and relatively solid rental prospects.
From the article …
Foreclosures have been a big problem here and many people who lost their homes are now renting. As a result, rents are on the rise. Local Market Monitor estimates rents will increase by more than $100 a month over the next three years.
The two biggest positives for those looking to invest in rental properties in Phoenix, according to Winzer, are that the job market is growing again and people are still moving to town. In fact, the population has grown by 8% since 2006.
He expects rental investments to pay 2.3% bigger return in the Phoenix metro area than the national average.
Winzer is Ingo Winzer, founder of Local Market Monitor.
As I said in an e-mail to past clients yesterday, the Phoenix market is in an odd place. The thin inventory makes it a sellers market, the low prices make it a buyers market and the strong rental market caused by those who have lost their homes also have made it a fairly decent investment market.
These usually are mutually exclusive conditions but that’s not the case here in the Valley.