HomeLovers Arizona 2010 State of the Industry Report Now Available
The HomeLovers 2010 State of the Industry Report indicates that by mid 2009, real estate trends in Metropolitan Phoenix showed a marked upswing as investors begin to show confidence in a market recovery. Report participant Michael Orr of The Cromford Report notes that pending home sales in ARMLS (the Arizona Regional Multiple Listing Service) were at a record level for January, indicating an increase in demand with a sales price increase likely to follow. He further noted that buying for the lowest price ranges is cooling off but that buying in the $250,000 - $400,000 range is beginning to increase and showed substantial activity in fourth quarter.
Key Findings in the report include:
• HomeLovers co-founders and Investing experts David Zundel and Michael Sargent expect a relatively flat market with a shallow upward trend, followed by a gradual return to historical appreciation rates through 2011 and 2012. While there may some swings in pricing, which is normal for a recovering market, there is unlikely to be another major drop and recovery will offset the damage.
• With homes selling below construction costs, the coming recovery will bring highest returns to those who bought at the bottom of the market.
• Investors should plan on holding property for a minimum of three-to-five years to leverage improving prices as the market recovers.
• Short sale transactions are likely to increase over REOs, as banks realize they reduce the loss to the lender. Until the inventory of REO and short sale homes drop to a "normal" level, prices will be held artificially low; however, this investor windfall will fade as the surplus inventory is absorbed.
• Cash buyers are likely to see the most success in purchasing short sale properties; investors relying on financing and minimal cash down are much less likely to close the sale.
• Zundel notes that over 80% of the investment properties brought to HomeLovers to manage are homes that they would never have recommended to buyers as a good investment. Investors are making purchases based on price, when there are many other factors that impact whether an investment property is profitable.
• Tenants are expecting a higher quality of rentals and investors are not doing enough to improve their properties. This has a significant impact on vacancy rates. Fresh paint and carpet cleaning is insufficient.
For more information regarding how to select the right foreclosure property in Arizona, common investor mistakes, tenant screening and more, please visit the articles page on http://www.homelovers.com/ or subscribe to the HomeLovers blog at http://www.arizona-investment-properties.com/.
About HomeLovers
Established in early 2008, HomeLovers is already one of Arizona's most rapidly growing home rental and property management companies. It was founded on the premise of creating a drastically improved property management agency model, including full disclosure of fees and anticipated costs in a market that is prone to "junk fees," unexpected costs and inexperienced agents that make it difficult to manage profitable real estate investment portfolios.
Because of its focus on the development of proprietary tools that assist investors with avoiding purchasing mistakes, maximizing return on their investments and attracting ideal, long-term tenants, HomeLovers was one of the first property management agencies to offer access to real-time online accounting, documentation and reporting.
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