| |
| Home Privacy Unsubscribing Data Testimonials About John Wake |
|
Feel free to
link to this page
|
Shocking number of new-build homes for rentToday I was checking out a brand new home in a beautiful master planned community in Gilbert. I was a little concerned, however, by the number of new homes that had "For Rent" signs. Then, driving around and checking out the commmunity, I was shaken to see four "For Rent" signs in a four block stretch! The market for homes in Gilbert is super tight. Those for-rent homes would sell easily if priced reasonably with a substantial profit for the investors, no doubt. I was wondering why so many investors were holding on to vacant, cash-eating homes, when all of a sudden the obvious hit me. Home prices have been increasing rapidly, so the investors are in no hurry to sell. Many investors are waiting for the market to peak before they put their homes on the market. The economist in me wondered what would happen when prices peaked? In one scenario, it seems likely that many of these vacant, for-rent homes would quickly be put on the market because they weren't rented and they weren't appreciating quickly anymore. In no time, a sellers market would shift to a buyers market. When appreciation rates level off, buyers will become the ones in no hurry, further weakening the market. No one knows when or if prices will peak. And even if they do peak, whether this scenario would play out. Certainly, if most of these for-rent new-build homes do get rented before appreciation rates level off, this scenario will be out the window. And anyway, I only cruised one community. A high vacancy rate among new-build rentals may not be a problem valleywide. I don't know. Here's the point. If you have a new-build investment home consider selling while the market is still hot, particularly if there are a lot of "For Rent" signs in your development. And if you decide to sell, I would appreciate a shot at your business. Please call me about helping you to sell your home, (480) 569-3851. Whatever you do, be careful about waiting for appreciation rates to level off before trying to sell your vacant new-build investment home. I'm worried that too many people may have the same idea. John L. Wake Be careful. Comparing sale prices from two months can be misleading. For example, price changes between April 2003 and April 2004 can be very different compared to price changes between May 2003 and May 2004. You should also look at price trends over many months using quarterly and annual comparisons. CLICK HERE to see the newest Arizona real estate price graphs. Then click "read more" to see full report with graphs.
|
