Valley Real Estate

[AZ Native]

In the third quarter of 2021 31.7% of the homes in Phoenix were purchased by investors. Add in those moving from other states who recently sold their home and it is a disaster for many residents who can no longer afford to purchase a home here.

 

[Folster]

In the third quarter of 2021 31.7% of the homes in Phoenix were purchased by investors. Add in those moving from other states who recently sold their home and it is a disaster for many residents who can no longer afford to purchase a home here.

Not doubting you, but do you have a source for that figure. It seems high. I'd like to read more.

 

[AZ Native]

Investors Have the Highest Market Share in Atlanta, Phoenix​

In Atlanta, nearly one-third (32%) of homes that sold in the third quarter were purchased by investors—the highest share of the 40 U.S. metropolitan areas Redfin analyzed. Next came Phoenix (31.7%), Charlotte, NC (31.5%), Jacksonville, FL (28.3%) and Miami (28.1%).

Here is the article: https://www.redfin.com/news/investor-home-purchases-q3-2021/

 

[Folster]

Investors Have the Highest Market Share in Atlanta, Phoenix​

In Atlanta, nearly one-third (32%) of homes that sold in the third quarter were purchased by investors—the highest share of the 40 U.S. metropolitan areas Redfin analyzed. Next came Phoenix (31.7%), Charlotte, NC (31.5%), Jacksonville, FL (28.3%) and Miami (28.1%).

Here is the article: https://www.redfin.com/news/investor-home-purchases-q3-2021/

I was interested in their definition of investor and the article did provide it.

For this analysis, we looked at county sale records for homes purchased from January 2000 through September 2021. We define an investor as any buyer whose name includes at least one of the following keywords: LLC, Inc, Trust, Corp, Homes. We also define an investor as any buyer whose ownership code on a purchasing deed includes at least one of the following keywords: association, corporate trustee, company, joint venture, corporate trust. This data may include purchases made through family trusts for personal use.

I guess when I read investor, I just thought of big institutions like BlackRock and BlackStone that have been reported recently. I wonder how many of these sales have been a result of home buying companies like Open Door, Offer Pad, and even Zillow for a while. Zillow reportedly took heavy losses with their short-lived home flipping operation. Some of these businesses make it so easy to sell avoiding all of the hassles of selling the homes. I guess the big question is what are these companies doing with the homes. Are they large institutional investors, rental companies, flippers, or smaller landlords? Are they being listed again shortly after or are they being rented.

 

[BigRedRage]

Any updates on the Phoenix real estate market? From what I have seen the prices are ridiculous; homes that sold for $270K in 2018 are now listing for $500K. Any opinions on when an adjustment is going to happen?

This IS the adjustment.

 

[BigRedRage]

IMO, we are transitioning to CA priced from decades ago. For a destination city, Arizona had low homw values. This is the correction. We will see a dip, we always do but it will be nothing like 2009 as this inflation is not caused by wrongdoing and poor lending, this is caused by affordable rates.

Even right now, A house I bought in December 2016 for $318k, I have listed at what it should appraise for, around $550k. I have 7 offers from people, all around $555k but guess what? Open door is offering more than all of them and is what I will end up taking. So, even in this inflated market, if large investors like opendoor are bidding higher than the actual people trying to buy homes, things are not slowing down at all.

The money tells you what is happening and will continue happening.

 

[Folster]

IMO, we are transitioning to CA priced from decades ago. For a destination city, Arizona had low homw values. This is the correction. We will see a dip, we always do but it will be nothing like 2009 as this inflation is not caused by wrongdoing and poor lending, this is caused by affordable rates.

Even right now, A house I bought in December 2016 for $318k, I have listed at what it should appraise for, around $550k. I have 7 offers from people, all around $555k but guess what? Open door is offering more than all of them and is what I will end up taking. So, even in this inflated market, if large investors like opendoor are bidding higher than the actual people trying to buy homes, things are not slowing down at all.

The money tells you what is happening and will continue happening.

That's remarkable. Agents seem to be almost useless in this current market when it comes to listing. They're not as easily replaced in the individual buying process though. You gotta take the best deal for you and your family. There's nothing wrong with that.

 

[BigRedRage]

That's remarkable. Agents seem to be almost useless in this current market when it comes to listing. They're not as easily replaced in the individual buying process though. You gotta take the best deal for you and your family. There's nothing wrong with that.

My agent is one of my best friends, Even if I compensate her on the side, the OD offer will still be the most cash in hand for me.

 

[BigRedRage]

speaking of. A potential buyer has come to the table to match opendoor. Things are getting interesting.

 

[ASUCHRIS]

speaking of. A potential buyer has come to the table to match opendoor. Things are getting interesting.

Make your money, the investors clearly think they will.

 

[puckhead]

speaking of. A potential buyer has come to the table to match opendoor. Things are getting interesting.

Good luck!

 

[jf-08]

A house right behind mine just listed for $999,999.

They'll never get that, and I'll be surprised if they even get within $200K of that.

It's crazy.

 

[Dback Jon]

A house right behind mine just listed for $999,999.

They'll never get that, and I'll be surprised if they even get within $200K of that.

It's crazy.

Will be interested to see what they get

 

[dscher]

A house right behind mine just listed for $999,999.

They'll never get that, and I'll be surprised if they even get within $200K of that.

It's crazy.

When in Rome!


Until the collapse..

 

[Brian in Mesa]

74% of Arizona households are priced out of AZ homes​

74% of Arizona households are priced out of new AZ homes

New data from the National Association of Home Builders finds that about three in four households in Arizona would struggle financially to purchase a median priced home in the state.

www.abc15.com

 

[AZ Native]

When in Rome!


Until the collapse..

Most likely a correction at some point.

 

[Folster]

Most likely a correction at some point.

Any day now...

You must be registered for see images attach

 

[BigRedRage]

this is the correction

 

[dscher]

Any day now...

You must be registered for see images attach

Exactly. Who needs growth from stocks when ya got 15 percent YOY growth on your property. I'm hodling. lol.

 

[dscher]

this is the correction

Heh?

 

[Folster]

Home refi's have fallen 50% annually. There must be a ton of layoffs in that industry.

 

[dscher]

Home refi's have fallen 50% annually. There must be a ton of layoffs in that industry.

I told my brother (mortgage broker) last year, while working in So Cal, to bust his ass with refis and purchases during this next run up... fortunately, he did well. But, he'll soon have to find something else..

 

[AZ Native]

this is the correction

I guess I'm getting old. I don't get it.

 

[jf-08]

I guess I'm getting old. I don't get it.

I think he was saying that it has been undervalued for so long now it is where it should have been.

 

[BigRedRage]

Heh?

A reset