If you scroll down through my posts, you’ll see that about last August, i predicted housing prices to lull in Phoenix. And that is precisely what has happened. Overall, price increases kind of stopped around then, although it comes down to each neighborhood, and the luxury market has been on a tear all year.
The other trend I observed, starting in January, was a plunge in available rentals. We had 9500 on the mls in January, it dropped to 5200 at a low a couple months ago, today it sits around 6000. Large numbers of rentals on the mls is a recent phenomena, so I don’t have any yearly patterns to go off of, but it is safe to say that early summer sees:
A. tens of thousands of ASU students go home, and B. tens of thousands of snow birds (seasonal renters, usually retires who come here to avoid the snow back home) also leave. So, I won’t know how to compare recent rental trends till late fall.
BUT, it has been enough to drive rental prices up. Months inventory has dropped and stayed below 2, and that is a tight rental market. Rents are up around 10% valley wide comparing to my existing rentals, and I have indeed raised several of my property rents during this time.
So recently, the number of rentals have increased somewhat, though still below a balanced market. Also, recently, the number of listings has dropped. Last year, it went up from May to June, this year it dropped by about 1000, so it will be curious to see which way these two trends go in the future.