Rental Market Review – Greater Phoenix Area

Residential rental market in Greater Phoenix Area showed pretty strong activities for the 1st Half of 2016.

Based on ARMLS Rent Check stats, all indicators are positive month-over-month. The summary of mid-year review is like —

  • Median Lease: $1,375 – 10% increase vs $1,250 in Jan 2016
  • Average Lease: $1,568 – 13.7% increase vs $1,379 in Jan 2016
  • Avg. Days on Market: 26 – 29.7% shorter vs 37 in Jan 2016
  • Rent Check Quotient™: 3 : 10 – reduced from 2:5 in Jan 2016
  • Closed Rental: 2,382 – Remains flat as 2,351 in Jan 2016
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ARMLS RENT Check™ – June, 2016

Median Lease: $1,375 – Increased from $1,340 previous month.

Average Lease: $1,568 – Increased from $1,505 previous month.

Avg. Days on Market: 26 – Increased from previous 25 days.

Rent Check Quotient™: 3 : 10 – Remain flat as 3 : 10 last month.

Closed Rental: 2,382 – Increased from previous 2,290 homes.

Rent Check Quotient™ (RCQ™) is the ratio of closed rentals and closed sales.

Cap rates and Cash on Cash are still above 4.65%, It’s still good time to ACT!

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Mortgage Market Updates

After huge losses following the Brexit vote, stocks hit record highs this week. Economic improvement fueling the rally could put upward pressure on mortgage rates.

The labor continues to show strength as jobless claims came in lower than expected. Claims were near the 43-years low of 248,000 touched in mid-April.

Producer prices recorded their biggest gain in a year in June, possible signaling inflationary pressure. Inflation could contribute to higher interest rates in the future.

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Housing Market Updates

According to Mortgage Bankers Association estimates, new single-family home sales were up 8.6% in June and are 7% higher year-over-year.

NAR’s latest HOME survey reports 62% of renters think now the good time to buy a home. Also 61% of home owners believe now is a good time to sell.

National home average prices have already climbed by over 5% in 2016. Economists predict strong home-price appreciation will continue this year.

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