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Old 09-16-2009, 02:33 PM
 
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I have herd that housing and apartment rents are going down in the valley. Does anybody know, if this to be true, and why are they going down? Thanks.
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Old 09-16-2009, 07:42 PM
 
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This is true. I found a one-bedroom APT in North Phoenix in an excellent neighborhood for just $475. Two years ago it would have been like $600. Where I used to live in Tempe and Central Phoenix has gone down too.
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Old 09-16-2009, 09:57 PM
 
Location: Anchored in Phoenix
1,942 posts, read 4,293,119 times
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I live in the southeast valley. My apartment's corporate HQ website advertised rent about $150 less than what I've been paying. So a few weeks ago I talked with the manager and asked if I could have a $115 rent drop. A few days later the apartments agreed. It's a 12 percent drop.

Reason for rent drops is obvious if you do a little research using internet and a web browser. Lots of foreclosures and a lot of specuvestor-owned houses. People hanging on and banks are trying to staunch some of the bleeding of value by renting out houses.

Basically there is a glut of rentals in Phoenix. I figure with AZ unemployment going up toward 11% from its current 9.2% and with more resets on the way, there will be more, not less, rentals this time next year. And I figure I will knock off somewhere between $50 and $100 additional in what I pay per month.

I love my apartment and I love my Arizona Leather furniture in that apartment! Renting is freedom!
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Old 09-17-2009, 12:05 AM
 
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Last March I was asked to renew at the current rental rate or terminate according to the leasing office. I went in and talked a leasing consultant in person and quoted what they were offering for my current apartment which was considerably less than what I was paying per month. They said, well everyone else is renewing their lease for the same price and we are not raising the price this year so you are really lucky. I said, well unless you reduce my rent to what you are offering to anyone who walks in off the street I'm forced to terminate because that's ridiculous that I should pay more. They said basically "whatever." So I turned in my termination form. The next day they called and met my demand to pay the amount they were offering for anyone who walks in off the street. What a load of BS. They thought I would just keep paying way more than what they would rent to someone who just walked in the door rather than move. (P.S. I have always paid my rent on time and have not even called them once for a problem.) Negotiate while you can.
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Old 09-17-2009, 01:23 AM
 
Location: Phoenix
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Saratoga Ridge on 14th St and Bell has 1bd's startng at $400, we would have moved there but we found a nicer place around the same price.
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Old 09-17-2009, 02:17 AM
 
Location: Tempe and Payson
1,164 posts, read 2,834,762 times
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Quote:
Originally Posted by KarmaPhx View Post
Saratoga Ridge on 14th St and Bell has 1bd's startng at $400, we would have moved there but we found a nicer place around the same price.
There's a reason Saratoga Ridge has cheap rent other than the economy. I would do a google search and see the comments on how bad this place is to live at.

On the other hand, I do agree that rents are going down everywhere. My son got a nice 1 bedroom condo in North Scottsdale for $600 a month, which is pretty cheap for the area. He even looked at one that was just as nice although it was a few miles farther east than he wanted to be and it was $550 a month.
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Old 09-17-2009, 03:33 AM
 
Location: Phoenix
2,897 posts, read 9,803,535 times
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Quote:
Originally Posted by crystalys View Post
There's a reason Saratoga Ridge has cheap rent other than the economy. I would do a google search and see the comments on how bad this place is to live at.

On the other hand, I do agree that rents are going down everywhere. My son got a nice 1 bedroom condo in North Scottsdale for $600 a month, which is pretty cheap for the area. He even looked at one that was just as nice although it was a few miles farther east than he wanted to be and it was $550 a month.
Don't rely on www.apartmentratings.com, I have found that it's mostly inaccurate. I have friends that live in Saratoga Ridge and love it, two different people in two different apartments. We were going to rent there but our place now is closer to work, and has a better gym.

Right now people are taking whatever they can get for rent, you can get a house in North Phoenix for $800-$1000 a month right now!
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Old 09-17-2009, 09:48 PM
 
Location: Anchored in Phoenix
1,942 posts, read 4,293,119 times
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It will cost even less next year to put a roof over your head so negotiate for a lower lease now. Be prepared to negotiate for an even lower lease next year at this time.

Rationale: Article posted today, September 17 (Reuters)

"Option" mortgages to explode, officials warn: Thomson Reuters Business News - MSN Money (http://news.moneycentral.msn.com/provider/providerarticle.aspx?feed=OBR&date=20090917&id=104 01999 - broken link)

"In Arizona, 128,000 of those mortgages will reset over the the next year and many have started to adjust this month, the state's attorney general, Terry Goddard, told Reuters after the meeting...
Because the new monthly payments can be five or 10 times what borrowers are accustomed to paying, they "threaten a much greater hit to the consumer than the subprimes," Goddard said, referring to the mortgages often extended to less credit-worthy
borrowers that fed the first wave of the financial crisis."

Folks, many people still do not understand. It does not matter if interest rates are at 0%. The resets mean those particular mortgage payers will have to make full payments after a certain date.

This is going to be a double dip recession. If you are renting now, keep renting. If you are in trouble with your mortgage, better to bail out now than to bail out when you are further underwater.

If you think this is a renter's market now, you haven't seen anything yet. 128,000 mortgages in AZ are starting to reset. Currently Zillow.com shows over 60,000 homes in Phoenix metro for sale. An additional 128,000 mortgage resets will bring the for sales up to 90,000, I'm thinking. A 50% increase. Many people/bank owners will add more rentals to the Phoenix area. This will drive rents lower.

It only gets better for us low lifes (LOL) who rent!
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Old 09-17-2009, 11:59 PM
 
Location: USA
3,966 posts, read 10,091,682 times
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Quote:
Originally Posted by jwest09 View Post
I have herd that housing and apartment rents are going down in the valley. Does anybody know, if this to be true, and why are they going down? Thanks.
Depends on the area. Downtown Phoenix and Tempe are still as expensive as they were 5 years ago. Other cities on the other hand...I will agree is long as it is away from the downtown'ish area of that town. For example, anything near Intel or Chandler fashion square is still expensive.
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Old 09-18-2009, 02:05 AM
 
Location: Phoenix
2,897 posts, read 9,803,535 times
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Areas like Old Town Scottsdale are still expensive too, those waterfont condos are still running $1mm+.

My lease is up in March, I am hoping to negoiate a better rate, or a good rate on a large or upgraded apt. If not I will tell them there is 100 other apartments out there offering better deals.
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