Are Rising Rents a Bellwether for 2017 Home Sales?
Is now a good time to buy a home? You bet, especially given rising rental prices this past year. According to realtor.com® analysis of median rent data from HUD, rents in Arizona increased 2.5 percent in 2016.
“The rental market is still very tight for potential tenants,” said Arizona REALTORS® 2013 President Sue Flucke, CRB, rCRMS, GRI. “Inventory is short and rents are increasing. In this type of market, it’s actually easier to buy than to rent right now.”
The latest data from ABODO.com indicates that the average Arizona renter paid $892 per month for a 1-bedroom in 2016 or 89% of the national average. Of course, that varies by location.
“Median rents declined in Sierra Vista and Flagstaff while increasing only 1 percent in Tucson,” added Jonathan Smoke, chief economist for realtor.com®. “Prescott and Yuma saw the largest increases in median rents of 5.6 and 8.5-percent respectively. Phoenix was slightly above the state’s increase with median rents increasing 3.3-percent.”
Year-to-year, Scottsdale rose to an average of $1,054 (+3.7%). Even so, ABODO projects the “West’s Most Western Town” to have one of the greatest rent falls in January 2017; dropping nearly 8% from December 2016. This seems contrary to upcoming events like Barrett-Jackson and the TPC.
“However, we are coming into the Spring Training market,” Flucke continued, “where short-term rentals all over the Valley are snapped up at higher prices.” The Cactus League starts three weeks after the TPC.
RentJungle.com reported one-bedroom apartments in Phoenix averaged $899 a month in December. The most expensive rental neighborhoods were in Laveen, Desert View and Central City; the lowest were in Alhambra, Maryvale and Estrella.
Buying a Home May Be More Affordable Than You Think – realtor.com®
January, February Great for Buying – REALTOR®Mag Tags: ABODO, Barrett-Jackson, Cactus League, rent, RentJungle, Sue Flucke, TPC