We’ve shared over the past few weeks how a lack of buyer demand for purchasing a home in the Metro Phoenix area has led to a lethargic (read: S…L…O…W) sales market.
We wrote about a number of reasons why this is happening including student loan debt, (especially the “millennials”) an apprehension about getting “stuck” in a home and mortgage like their family or friends did, and the fact that many of the millennials aren’t leaving home so quickly – hey who doesn’t like “free?”
This rental demand is leading to a rental supply shortage than we’ve seen in a while. For example, in January of this year, the median priced rental listing in the valley was $1095 and the average market time was 48 days
This month has seen that median price move up to $1170 and a market time drop to 31 days.
This morning, Jonathan checked on 8 potential rental listings he was going to show a new out of area client today that the client had found on Trulia. Well, in checking the availability and arranging for showings, Jon found that 6 were already rented!
It’s interesting how the current rental market parallels a hot sales market. We find we’re recommending the very same things we do for house buyers:
1) Get pre-approved (check your current credit score and correct any mistakes)
2) Get a good reference letter from your current landlord (hopefully) praising you for what a great renter you were (these are powerful)
3) Be ready to jump on a deal. Don’t be too picky.
4) Get on an automated MLS search going, but check Craigslist, Trulia, Zillow, and word of mouth also. Call Jonathan directly (602-341-9490) to get you set up on an MLS search-no cost or obligation)
One final thought: We’ve been mentioning recently how affordable home ownership is compared to renting. That gulf seems to be getting wider. If you can qualify to buy a home now, it might be a REALLY good move, even if it’s not free.