Lower Vacancy Rates
HI, We hope you are all ready for the weekend. It is beautiful here in the Valley of the Sun.
We are always getting questions from people looking at condos, as to whether it's worth it to buy or not. Both from owners and investors. This might shed a little light on it.
Lower vacancy rates and higher rents seen in 2005 will continue this year, predicted CB Richard Ellis, a real estate services firm, which released its annual forecast Thursday to clients. This is what the forecast had to say on the multi-family sector:
Apartment occupancy rates could reach 96 percent this year, a remarkable turnaround from the 89 percent rate in 2003. The rebound is reflected in the vanishing concessions that apartment managers and owners are offering prospective renters, such as one-month free rent. Rents are also expected to climb 7 percent. Competition for land between apartment builders and condominium developers will push per-unit construction prices higher. This year, more apartment units will be converted to condos than new apartment units added to the market.
What does this mean to you the consumer? If you are an investor, it means that it may once again become possible to have positive cash flow. As the vacancy rates lower, it will be easier to get tenants, and better rental rates. As a renter, it means that you will most likely pay more per month. It might be time to consider a purchase for yourself, if you qualify. You more than likely will be able to own for the same and possibly less than renting, and you get equity growth potential and a tax write off.
As someone looking for a first time residence, there will be more opportunity in all parts of the valley. That opportunity hasn't been there in the past year as prices rose.
If you are considering a purchase, whether for your own home or investment, give us a call. Let us take the stress out of your search.
Have a great weekend.
Adam Tarr, ePRO
Sharon Kotula, ABR
Your Phoenix Area Real Estate Source
RE/MAX Excalibur
Scottsdale, AZ
480-483-3333
www.WeAreAZRealEstate.com