Median price for Phoenix house goes up to $450,000 (Mesa, Scottsdale: 2014, renters)

[CAHLUV]

Originally Posted by KurtAZ

Kind of a stretch calling that an "Arcadia" home. That is in Camelback Foothills/Heritage Hills almost PV.

The typical question is going to come up. If you sell your primary home, where do you move? Further out? Different state? Downsize? May as well stay put.

That is the main question!

[MN-Born-n-Raised]

Originally Posted by dontbelievehim

Your market doesn't make much sense from an outsiders perspective. Prepare for a correction.

What you meant to say was "Your market doesn't make much sense from an uneducated outsider's perspective." followed by: "since I don't know what the Hell I'm talking about, I wonder if you should prepare for a correction. "

[Sno0909]

Originally Posted by dontbelievehim

Wth is going on over there. East PHX valley cost almost as much as scottsdale. Phx proper costs 50-70k more than Vegas and Fresno. Phx is catching up to Reno, SLC, and Riverside! I remember when the whole point of moving to Phoenix was for cheap housing because there was endless land. Last time I checked, there's still a ton of land. Your market doesn't make much sense from an outsiders perspective. Prepare for a correction.

Arcadia tract house
https://www.zillow.com/homedetails/4.../7837490_zpid/

Custom Fresno house
https://www.zillow.com/homedetails/7...18718917_zpid/

Edit: seems like the west valley and condos are only things not severely overpriced.

As much as the East Valley (Gilbert in particular) is trying to be Scottsdale, the prices are not aligned. I have a new client right now looking up by Grayhawk, Silverleaf, DC Ranch area and I was actually shocked to see how much prices have risen over there. Regular tract homes for over $1 million. Gilbert ain't there yet...

[MN-Born-n-Raised]

Originally Posted by Sno0909

As much as the East Valley (Gilbert in particular) is trying to be Scottsdale, the prices are not aligned. I have a new client right now looking up by Grayhawk, Silverleaf, DC Ranch area and I was actually shocked to see how much prices have risen over there. Regular tract homes for over $1 million. Gilbert ain't there yet...

In 2018, we looked in Grayhawk and Pinnacle Peak (as well as others). Back then, we had to spend around $650K-$750K to find a nice place. I wasn't willing to kick in $300K to $400K more versus the spot we already had. I'm assuming those homes are a solid $1.2M now. I need to dig out the addresses and look. Our home in Surprise went from $370K(ish) in 2018 to around $450K Q4 of 2020 and now is now approaching $600K. So while my buyer picked up $150K in gains since he bought it in Q4 of 2020, I picked up $350K. I'm a winner by $200K!

Now if I could rewind to the year 2011 and buy in the "cheap seats" inside DC Ranch for about $400K (for a 3000 square footer) versus $190K in the "same" development in Suprise, I'd be up even more! But I suppose it would have been easier to simply buy Amazon stock. Obviously, luck has a lot to do with the gains. But I've finally figured out that more appreciation happens when people are willing to overpay even more. I've determined the phrase overpaying is defined as "appreciation". lol

[Tall Traveler]

Originally Posted by MN-Born-n-Raised

In 2018, we looked in Grayhawk and Pinnacle Peak (as well as others). Back then, we had to spend around $650K-$750K to find a nice place. I wasn't willing to kick in $300K to $400K more versus the spot we already had. I'm assuming those homes are a solid $1.2M now. I need to dig out the addresses and look. Our home in Surprise went from $370K(ish) in 2018 to around $450K Q4 of 2020 and now is now approaching $600K. So while my buyer picked up $150K in gains since he bought it in Q4 of 2020, I picked up $350K. I'm a winner by $200K!

Now if I could rewind to the year 2011 and buy in the "cheap seats" inside DC Ranch for about $400K (for a 3000 square footer) versus $190K in the "same" development in Suprise, I'd be up even more! But I suppose it would have been easier to simply buy Amazon stock. Obviously, luck has a lot to do with the gains. But I've finally figured out that more appreciation happens when people are willing to overpay even more. I've determined the phrase overpaying is defined as "appreciation". lol

Yeah we bought 3 houses in the area in 2011-2013 timeframe and were looking at Surprise, Maricopa and a few other areas and my good friend was suggesting Scottsdale (where he lived). We ended up buying 3 homes in Maricopa and the house values there have increased much greater on a % basis than Scottsdale and most other areas around Phoenix.

We ended up deciding to move into one of the houses that we liked, using one for my son and his family and sold the other last October for a huge profit.

I think the time has passed to buy houses here as an investor but you can still find a nice house in a nice community for a decent price especially considering low interest rates.

[john3232]

Originally Posted by Tall Traveler

Yeah we bought 3 houses in the area in 2011-2013 timeframe and were looking at Surprise, Maricopa and a few other areas and my good friend was suggesting Scottsdale (where he lived). We ended up buying 3 homes in Maricopa and the house values there have increased much greater on a % basis than Scottsdale and most other areas around Phoenix.

We ended up deciding to move into one of the houses that we liked, using one for my son and his family and sold the other last October for a huge profit.

I think the time has passed to buy houses here as an investor but you can still find a nice house in a nice community for a decent price especially considering low interest rates.

I bought in 2010- Jan. -2011


All prime location. Equity? It's a pretty penny on paper but ultimately a home is only worth what a buyer pays at the time of sale.

Now... before I pat myself on the back let me also say I bought four properties in 2005. And the less said about that the better. (Although I have made good money on them it's hardly what I'd call a "pretty penny."

But what has surprised me most this year are rents. I've mentioned the renters I had in the 2500 sq ft Chandler rental bought their own home and moved this year. The were paying $1625. After they moved out I spent roughly 10 grand fixing the place up.

Initially I was thinking $2400 but thought the rental market is on fire. So, I listed it at $2800. The phone rang off the hook but it was mainly questionable applicants: usually three or four adults with multiply cars and poor credit. (The HOA has strict parking requirements. You can park either inside the garage or in the driveway. That's it.)

After a week I lowered the rental to $2500 and it was gone in two days.

After the monsoon weeds were growing in front of another off my rentals. I went over and began to remove them. The tenant ran out and started to apologize. He was very sorry and would be more careful in the future. What he's really sorry about is his lease agreement expires in three months and the market rate for this home has jumped 300 within the last year.

However, this renter is smart. He never calls me about any nickel and dine bull****. So... I'm not raising his rent.

I've got a woman renter who yes sir's me so much I sometimes think that's my name. She's been with me for almost 5 years and has a fantastic deal. Again smart renter. Does what I ask and never complains. However, at some point in 2022 I'll give her 90 days to vacate, clean up the place and re-rent it for at least $700-$800 more.

Ahh... so nice to be in charge again. It was like this in 1998 when I bought the SF property.

However, rental laws change dramatically in favor of renters and by the time I left in 2019 renters rule the roost. Look at a renter cross-eyed and they'll sue with the city providing free legal counsel.

Alas my guess is within 5-7 years Phx will start introducing rent control. Fortunately, it won't reach Mesa, Chandler or Gilbert until later. At which time I'll cash out.

Oh... there's also this in case anyone missed it:
https://www.usatoday.com/story/news/...um/8243599002/

[MN-Born-n-Raised]

Originally Posted by Tall Traveler

Yeah we bought 3 houses in the area in 2011-2013 timeframe and were looking at Surprise, Maricopa and a few other areas and my good friend was suggesting Scottsdale (where he lived). We ended up buying 3 homes in Maricopa and the house values there have increased much greater on a % basis than Scottsdale and most other areas around Phoenix.

We ended up deciding to move into one of the houses that we liked, using one for my son and his family and sold the other last October for a huge profit.

I think the time has passed to buy houses here as an investor but you can still find a nice house in a nice community for a decent price especially considering low interest rates.

It depends. Back when I bought it, it was about $110K for a 2000 square footer. And about $140K for a 2600-2800 square foot home. For a $3500-3800 square foot, it was $170K to $190K. So I figured, why not buy the bigger one.

Fast forward. Percentage-wise, the smaller ones went up more in the exact neighborhood. But dollar increase wise, from 2011 to 2018, add about $180K to all sizes in the same neighborhood.

[asufan]

Originally Posted by john3232

I bought in 2010- Jan. -2011



All prime location. Equity? It's a pretty penny at on paper but ultimately a home is only worth what a buyer pays at the time of sale.

Now... before I pat myself on the back let me also say I bought four properties in 2005. And the less said about that the better. (Although I have made good money on them it's hardly what I'd call a "pretty penny."

But what has surprised me most this year are rents. I've mentioned the renters I had in the 2500 sq ft Chandler rental bought their own home and moved this year. The were paying $1625. After they moved out I spent roughly 10 grand fixing the place up.

Initially I was thinking $2400 but thought the rental market is on fire. So, I listed it at $2800. The phone rang off the hook but it was mainly questionable applicants: usually three or four adults with multiply cars and poor credit. (The HOA has strict parking requirements. You can park either inside the garage or in the driveway. That's it.)

After a week I lowered the rental to $2500 and it was gone in two days.

After the monsoon weeds were growing in front of another off my rentals. I went over and began to remove them. The tenant ran out and began to apologize. He was very sorry and would be more careful in the future. What he's really sorry about is his lease agreement expires in three months and the market rate for this home has jumped 300 within the last year.

However, this renter is smart. He never calls me about any nickel and dine bull****. So... I'm not raising his rent.

I've got a woman renter who yes sir's me so much I sometimes think that's my name. She's been with me for almost 5 years and has a fantastic deal. Again smart renter. Does what I ask and never complains. However, at some point in 2022 I'll give her 90 days to vacate, clean up the place and re-rent it for at least $700-$800 more.

Ahh... so nice to be in charge again. It was like this in 1998 when I bought the SF property.

However, rental laws change dramatically in favor of renters and by the time I left in 2019 renters rule the roost. Look at a renter cross-eyed and they'll sue with the city providing free legal counsel.

Alas my guess is within 5-7 years Phx will start introducing rent control. Fortunately, it won't reach Mesa, Chandler or Gilbert until later. At which time I'll cash out.

Oh... there's also this in case anyone missed it:
https://www.usatoday.com/story/news/...um/8243599002/

Just a thought, be careful posting such specifics (the info I deleted in my quote). Posting when you bought, the square footage, price and city is easily searchable and there a growing sentiment of "landlord hate" out there. Be careful

[wase4711]

Originally Posted by asufan

Just a thought, be careful posting such specifics (the info I deleted in my quote). Posting when you bought, the square footage, price and city is easily searchable and there a growing sentiment of "landlord hate" out there. Be careful

especially after this happened last night.

https://www.cnn.com/2021/08/26/polit...ium/index.html

[john3232]

Originally Posted by asufan

Just a thought, be careful posting such specifics (the info I deleted in my quote). Posting when you bought, the square footage, price and city is easily searchable and there a growing sentiment of "landlord hate" out there. Be careful

Roger that. Haters gonna hate.

Thanks