Phoenix Market Predictions For Landlords in 2019
As part of a national franchise, Real Property Management Phoenix Metro leverages information gathered from over 280 offices in North America to review real estate market indicators and uses that data to create an economic outlook for landlords and rental property owners in the Phoenix area. In 2018, Real Property Mangement’s predictions were 95% accurate, and we feel that our information will serve as a solid guide for investors as they navigate the Phoenix Arizona market.
2018 predictions were no surprise to seasoned investors due to the booming housing market. However, the year ahead is shaping up to be more complex. Some economists are warning that an economic downturn is a possibility, while others claim there is no cause for alarm.
Here are Real Property Management’s five predictions for 2019.
1 – Bargain properties will be more difficult to find. Due to historic drops in levels of foreclosure properties, rental property investors will face a tough market if looking to buy high cash flow rental homes.
2 – Mortgage loan rates will increase due to anticipated increases in the prime rate. This means a reduction in competition for affordable properties, pricing new homebuyers out of the market but also making it more expensive to finance new rental property purchases. If the Federal Reserve raises rates as expected, some experts predict that mortgage rates could go as high as 5.8% in 2019.
3 – Because inventory levels will be lower, expect more competition in the real estate market.
4 – Rental income, especially for single-family residences, will increase at the same rate or slightly higher than last year. Strong demand for rental homes should allow for a 4% increase in the Phoenix market.
5 – Demand for rental properties will remain strong in 2019. Vacancies in most areas will continue to be easy to fill. Higher mortgage rates will prevent many first time home buyers from entering the market. Even though bargain rental properties will be harder to find, the strong demand and rising rents will make single-family rental investments remain an attractive long-term investment.
In the competitive Phoenix property management market, it is more important than ever to have the right property management team in your corner. Real Property Management Phoenix Metro has over 24 years of experience helping investors find success. We offer a range of tools and financial reporting capabilities to keep you in the know and prepared to succeed. If you would like a free consultation and quote, please contact us today!