House prices continuing to rise? (Glendale, Chandler: real estate, 2015, renter)

[blisterpeanuts]

It seems there's a bit of a real estate rebound happening in Arizona.

My home in north Glendale has recovered much of its value, according to Zillow. Sadly, we had to relocate back East because of my job, but we held onto the house, a modest 3-bedroom 2-bath ranch in a nice middle class neighborhood near W. Union Hills and 59th Ave. Nothing fancy, but decent size yards, 2-car garage, lot of potential for a renovator.

When we bought it, mid-2007, for $226K, it seemed like such a bargain compared to houses in Massachusetts, New York, and Connecticut.

Then, of course, the implosion began and around 2010-2011, Zillow was telling us the place was worth $110K. I found a job back east, and had to relocate my family, but hung onto the house. Friends were saying, "Oh, just walk away from it. Short-sell it. Send the keys back to the bank."

No way. I held onto the house, found a good management agency to rent it out, renewed the home warranty, and here we are, almost five years later, still the same tenant and Zillow now says it's up to $190K.

The management agency suggested we raise the rent for this next year, but I am keeping it the same ($950). My attitude is, she's been a good tenant, the house looks nicer than when we lived there, and although I lose a bit every month, I'd rather keep a good tenant.

Once the house is in the low $200s, we can start to think about getting some of our money back out of it. But part of me wants to just hang onto it forever. It'll be retirement income, or perhaps a retirement home some day.

Meanwhile, we rent a tiny home back East that would cost us 3-4 times as much, and no garage! Pitiful.

My great regret? That I didn't have the bucks to buy 3-4 more houses in 2011.

Anyone else in this situation?

[asufan]

Originally Posted by blisterpeanuts

It seems there's a bit of a real estate rebound happening in Arizona.

My home in north Glendale has recovered much of its value, according to Zillow. Sadly, we had to relocate back East because of my job, but we held onto the house, a modest 3-bedroom 2-bath ranch in a nice middle class neighborhood near W. Union Hills and 59th Ave. Nothing fancy, but decent size yards, 2-car garage, lot of potential for a renovator.

When we bought it, mid-2007, for $226K, it seemed like such a bargain compared to houses in Massachusetts, New York, and Connecticut.

Then, of course, the implosion began and around 2010-2011, Zillow was telling us the place was worth $110K. I found a job back east, and had to relocate my family, but hung onto the house. Friends were saying, "Oh, just walk away from it. Short-sell it. Send the keys back to the bank."

No way. I held onto the house, found a good management agency to rent it out, renewed the home warranty, and here we are, almost five years later, still the same tenant and Zillow now says it's up to $190K.

The management agency suggested we raise the rent for this next year, but I am keeping it the same ($950). My attitude is, she's been a good tenant, the house looks nicer than when we lived there, and although I lose a bit every month, I'd rather keep a good tenant.

Once the house is in the low $200s, we can start to think about getting some of our money back out of it. But part of me wants to just hang onto it forever. It'll be retirement income, or perhaps a retirement home some day.

Meanwhile, we rent a tiny home back East that would cost us 3-4 times as much, and no garage! Pitiful.

My great regret? That I didn't have the bucks to buy 3-4 more houses in 2011.

Anyone else in this situation?

You might pay an agent to do a BPO on the property and see what it is really worth, Zillow is drastically off (either high or low) on most of my properties.

[jdahunt]

The only prices on Zillow that are somewhat accurate are the sell prices......the value price is usually way off.


Look for the houses in your area that have sold in the last 3 months....that is a good clue.

[jmw51882]

I am currently in the market to purchase a home. The price I'm looking, 250-300, homes are under contract within 3 days of listing. I have scheduled multiple showings of homes, only to have them canceled because they go under contract before my appointment. The homes I have made offers on have all been multi offer situations.

[Zippyman]

I have family members who own a couple of properties in that area & I actually believe the current values are being held in check temporarily by the amount of inventory coming online - I've told them to hold on at least for a couple more years before cashing in. In that specific area, I think the basic 1132 sq ft 3/2's will hit the $220-230k range in a couple years - selling now might well be leaving 30-40k on the table. The rent income is nice, but the equity you'll likely gain will outstrip the rent & in any case, I don't see you losing any money by holding on, if you can. As it is, the nicely rehabbed / decorated ones are pulling numbers like that on occasion. It only takes a couple good (or bad) comps to change everyone's values for better or worse.

[sandy6879]

Our neighborhood, most houses that are being listed have been going under deposit within 12-24 hours of listing. I'm thankful for that since we're starting to get ready to sell it. But yes - prices have been going up and we're seeing how quickly homes are selling here as well.

[Dewey59]

Originally Posted by blisterpeanuts

The management agency suggested we raise the rent for this next year, but I am keeping it the same ($950). My attitude is, she's been a good tenant, the house looks nicer than when we lived there, and although I lose a bit every month, I'd rather keep a good tenant.

Kudos to you! And I totally agree - great renters are few and far between. Keep treating her well.

[jmw51882]

Originally Posted by sandy6879

Our neighborhood, most houses that are being listed have been going under deposit within 12-24 hours of listing. I'm thankful for that since we're starting to get ready to sell it. But yes - prices have been going up and we're seeing how quickly homes are selling here as well.

I would be interested to see how the recently announced layoffs at Intel will effect the Gilbert and Chandler areas.

[Zippyman]

Originally Posted by jmw51882

I would be interested to see how the recently announced layoffs at Intel will effect the Gilbert and Chandler areas.

Losing 500 jobs is never good, but if any area of the valley can take it, it's gilbert & chandler - they bounced back quick after the crash & all the other employers there are doing fine.

[ji603]

I live around the corner from Intel and would say there has been an uptick in houses coming on the market. They do seem to get multiple offers in the first week though.

And to OP, I like your morals and integrity. First, for keeping an upside-down house from across the country when at the time, everyone was walking away, and second, for respecting the renter enough not to increase her rent now that times are different. Class.