Arizona Time to Buy
Buy Arizona Real Estate Now!
Is now a good time to invest in Arizona rental real estate? After all, the country is in the middle of a major pandemic. People are concerned about their jobs. Many jobs have disappeared, never to return. Sellers are concerned about agents and buyers traipsing through their property, bringing the virus in along with them. So is now really a good time to invest in Arizona housing?
There Is Less Competition
Homebuyer demand is still there but it is starting to wane. Buyer traffic is down about 25% from what it was just last year. When buyers are plentiful it becomes a sellers market. When the number of buyers begins to dry up, the seller’s power over the sale starts to swing more into balance for the buyer.
Sellers believe that the pandemic may cause home prices to drop. Because of this and the pandemic, there are fewer homes for sale. According to data by Zillow, active listings are down 8% from this time last year. While this is not exciting news for buyers, there is less inventory to choose from, it is offset by extremely low mortgage rates.
Arizona Is An In-Bound State
An in-bound state is one in which people are moving into. Arizona is now considered one of the top two or three in-bound states. People are coming for several reasons; the weather, the economy, jobs, taxes, and cost of living. In Arizona there were 20% more moves into the state than out of it.
People need housing and not all of the people moving in will be in a position to purchase their home right away. That means there will be a demand for rentals and that makes this a good time for investors to buy single family homes in good areas.
Marketing During The Pandemic
When you begin to advertise your property you need to understand that marketing methods have changed dramatically due to everyone’s health concerns. 3D virtual tours, once a secret weapon, are now the mainstay of marketing a home, for sale or for rent.
With a specialized photographer and equipment, not only a video, but an overhead 3D rendering can be created to show off your property to potential tenants. You don’t have to traditionally stage your property to get great looking videos or pictures. There are virtual staging companies that can “add” furniture to professionally taken photos. These companies can “display” living room setups, place bedroom furniture, and even render outdoor entertainment spaces that will include the potential for outdoor movie viewing.
It is reported that “For Rent” listings that include 3D virtual tours increase traffic by an estimated 250% over those without them.
Why The Buying Time Is Now
Buying Arizona rental property during the covid-19 pandemic can be a good investment strategy. Contrary to what many people think, during economic downturns property values actually increase. The key is to find a property that will cash flow today, but will also appreciate in value in the near future. Mortgage interest rates are low which makes a property that much easier to cash flow.
People need a place to live. More people are moving to Arizona than are leaving. Arizona has a strong historical outlook. There is strong job growth, people are moving in, and rental housing is affordable. It is time for the smart investor to get into the game, or to increase their real estate holdings.
Karl Kennedy
Author of ProjectorTop.com