The Cromford Report tracks single family rents. Note, however that not all rentals are on the MLS. Lower priced rentals tend to go to Craigslist, etc.

The “Affordability/Rent” slide shows you how the average lease prices have really gone up recently —more so in CenPho and the historic neighborhoods.

This chart looks really dramatic, but notice that we are going from 65 cents per square foot to 90 cents per square foot over the course of five years. Not that this is nothing.

See our video on the causes of homelessness increases here https://youtu.be/OsdUlEZ1qSI

However, any time I see a chart that looks this dramatic, I like to draw attention to the numbers, not just the graphics.

So, what does this mean for you?

BUYERS: If you are not ready to buy, don’t despair. Save your money as aggressively as possible. Also, the lenders we work with have access to down payment programs for low income buyers. See if you qualify.

SELLERS: Even according to these charts, your home may be less expensive than renting. We can communicate to those renters that buying is an option. Also, from now until early June is the high season. Sell now if you are going to sell this year!

Call us directly for more insights at 602-456-9388.

The Cromford Report also compares renting vs buying.

This slide that shows how the average Principle and Interest (P&) in Dec of 2018 was very close to that of January 2005. Obviously, interest rates are lower. However, you can see how the margin between average monthly payment and average estimated monthly payment for a 1,900sf home have been diverging in recent years. 

So, what does this mean for you?

BUYERS: If you are not ready to buy, don’t despair. Save your money as aggressively as possible. Also, the lenders we work with have access to down payment programs for low income buyers. See if you qualify.

SELLERS: Even according to these charts, your home may be less expensive than renting. We can communicate to those renters that buying is an option. Also, from now until early June is the high season. Sell now if you are going to sell this year!

Call us directly for more insights at 602-456-9388.

The Cromford Report keeps an eye on affordability in the market. Here are three interesting slides about that.

It is notable that our home sales affordability in 2018 in Phoenix was just below the normal range. This is contrary to the anecdotal stories we hear about how expensive homes are. That’s probably because the horror stories we hear are probably from the dense urban cores, whereas the suburbs are more affordable. 

Over-all, the valley is still affordable.

While there are many people moving in to Phoenix (locations to Maricopa County are really high, nationally), we need salaries to increase across the board for this to get better. Either that, or prices will come down. We are, of course, seeing the latter.

So, what does this mean for you?

BUYERS: If you are not ready to buy, don’t despair. Save your money as aggressively as possible. Also, the lenders we work with have access to down payment programs for low income buyers. See if you qualify.

SELLERS: If you bought between about 2010 and 2015, you are still likely to get a great return.

This reminds us of the old saying about investing, “you’ll never know where the highest and lowest points are, but if you are pretty close, you are doing well.” 

Call us directly for more insights at 602-456-9388.