This morning, ARMLS released it's Rent Check statistics for August 2014 showcasing the Valley's leasing market. Year to date in the Phoenix area, rentals continue to perform very well in comparison to the previous years going back to 2005. Leases did make up a significant portion of my business in areas of Scottsdale from Old Town Scottsdale to McCormick Ranch, Grayhawk and beyond. However, it's interesting to note that for year to date data, closed leases are actually off by 10%.
Last year, the number of rentals ticked up substantially in the month of August, but if you look at the graph, July 2014 was already lower than June. And if you look even closer, both the month of June & July for 2014 were had fewer leased homes than the same periods in both 2013 & 2012. This may be a turning point for landlords both private and institutional as the market shifts back toward home-ownership from leasing as many people scarred by the real estate and economic downturn regain their foothold on their wealth and credit.
Landlords, strongly start to think about your options should the rental pool of good applicants start to shrink come time to renew your next lease. Are you in a position to release your property because of the location or other attributes that make it desirable regardless of the market, or will vacancies and expenses diminish your profits to where it is no longer a good investment option.
Food for thought! Have a great day!