It Pays to Know the Local Housing Market in Phoenix, AZ
August 3, 2018
In 1597, Sir Francis Bacon said, “Knowledge is power.” At Austin Fleck Property Management in Gilbert, AZ, we say “Knowledge empowers”. It empowers people to achieve great results. The more you know about the factors affecting the value of the housing market, the greater the results you can attain in your return on investment.
Here are four critical trends we understand and study in our pursuit of excellence in the rental housing market. We’ve been following these trends and others for over 30 years. Our professional experience has enabled us to give sound advice to our rental homeowners, since we understand what is happening locally, statewide, and nationally. Understanding these fluctuating trends helps us help you, our clients.
Consumer Spending Trends
Consumer spending is the money spent by individual households on items that are considered durable goods and services. While consumer spending typically includes food and clothing, it is the higher-end discretionary spending on items like cars, appliances, and electronics that economists track in order to get a bigger picture of the actual state of the economy. When there is more spending on these things, it indicates to you, the investor, that your property value is increasing. In other words, in an upward-trending economy, people will be willing and able to spend more on rental housing. This knowledge empowers those in the housing market to make better decisions when it comes to establishing rental prices.
Property Value Trends
While consumer spending trends are a broader indicator of economic health, local property value trends are a more specific means of understanding what is happening in your neighborhood. Have property values around your rental home risen or fallen in the past year? What about in the neighborhoods surrounding yours? Is there an area in your locality that is seeing a spike in investment or development? Or, is there an area near you in decline as a result of issues like higher crime or urban flight? Knowing these trends is another essential factor for you as an owner in stewarding your rental home. We stay aware of these factors in order to understand rental property rates in our region and state.
Mortgage Rate Trends
Mortgage rates are one of the key factors that will determine your success as a real estate investor. A savings of even .25% on a mortgage will mean money in the bank for you. Since rates fluctuate daily (and sometimes minute-by-minute), it pays to follow the trends weekly and monthly. As investors ourselves, at Austin Fleck Property Management, we stay informed. We also keep an eye on the news. When banking and lending institutions forecast their rate stability over time, they will be considering the effect of tariffs and trade negotiations, the balance of international payments and currency fluctuations, foreign conflicts, immigration trends, and more. These aspects of informed knowledge help us understand the market in Arizona and in the Phoenix Valley.
Knowledge is Power, Wisdom is Strength
Knowledge is power, and wisdom is strength. At Austin Fleck Property Management (serving the Phoenix Valley), we stay informed with factors related to the housing market. It’s our goal to give our clients a well-rounded, complete package of superior service and outstanding dedication. If you’re looking for a great management company that knows the big picture while giving attention to the details, we can help manage your rental home. We’ve got a proven track record in the industry. Be wise, and make a strong choice. Give us a call!