U.S. apartment rents leapt at the fastest pace since the real estate crisis of 2007. The average apartment rent now stands at nearly $1,180, up from about $1,125 a year ago, a gain of 4.6%.
The vacancy rate is now down a whopping 45% from its 2009 peak. In some markets like Portland and San Francisco, vacancy is minuscule and rent increases are 2-3x the national average. Full coverage can be found in this Wall Street Journal article.
This is terrific news for landlords. There's not much to reverse this trend either, with new home formation having far exceeded new home construction since the last peak. Mortgage lending also remains tight, with millions of people still shut out.
To take advantage of high rents, please click here for access to unlisted cash flowing real estate. It's possible to get returns in excess of 10% per year now, with opportunity for future rent increases and capital appreciation.
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Have the recent increases in real estate prices got you wondering if our market is overvalued?
According to this excellent analysis, the answer is no. Phoenix real estate is fairly valued, in line with the long-term trend.
The same cannot be said for many other cities in the US, notably San Francisco, New York, and Denver -- each of which are flashing major warning signals.
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Closings Quite a lot of activity in Paradise Valley since this newsletter was last published 3 weeks ago, with $37.1 million in sales. This is a particularly healthy level of activity given the holiday season.
The average price was just under $2.1 million and $387 per square foot. These are quite solid numbers, given the average age of construction was 23 years.
These numbers bode well for Q1. As previously predicted in this newsletter, expect a lot of turnover in coming months. Listings
23 new listings ranging from $975k for a fixer upper, to $5.5 million for a Frank Lloyd Wright inspired home on a large lot.
There are two homes that really stand out:
Spacious Home with Views Built in 2008, this 8,238 square foot home sits on a quiet elevated flat lot with mountain and city lights views. Superb finishes, guest house, negative edge pool, 4 car garage and more. Offered at $3.3 million.
Frank Lloyd Wright Inspired Home On almost 2.5 acres, this dramatic 6 bedroom home was designed by by Taliesen Scholar and Architect Gustad Irani. Amenities include a 40 foot lap pool, 6 car garage, and exotic finishes including zinc inlaid terrazzo, sycamore cabinets, and exposed block walls. Offered at $5.5 million.
To see all of this week's new listings please click here.
To see everything on the MLS in Paradise Valley please click here.
That's all for this week, I'll be back next week with all the latest in Paradise Valley real estate.
Thank you,
Alex Goldstein(480) 442-7325
p.s. Have you signed up for the VIP list? Click here for priority notification about unlisted properties, and opportunities that meet your specifications. You will only be contacted about properties that meet your specific criteria, and there is never any obligation.
Disclaimer: All information is believed to be accurate, but should be verified by the reader and is provided without warranty. Please consult appropriate financial, tax, legal, and real estate advisors before making decisions.
(c) 2015 Alex Goldstein PLLC
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