Hard Money & Real Estate Market Trends You Need To Know

By August 12, 2019 Blog
real estate trends and hard money trends to watch

Real estate investors saw a great July, with lower mortgage rates, rentals, and more investments, and hard money opportunities.  With constant news reports it’s easy to miss the top real estate trends from last month! Hop into the best investments in Arizona, and best cities to do so, all while using the best hard money in Arizona.

Selling In Arizona Has Never Been Easier

Arizona Cities continue to rise and favor sellers. With the lack of inventory driving the seller market, almost every major city has seen huge improvements. CMI values were already very high last month but they have increased by an average of 12.1% since July 1. Other 15 cities jumped by 8% or more. Only Cave Creek slowed down, and Glendale saw small increases of only 2%.

The cities that rose the most reflected the strength of the Under $300,000 market. Even the most expensive cities, saw high gains as well. July, a slower summer month shifted harder for sellers than expected. Why? Lack of Supply. Supply and inventory have dropped harder than before, and there just isn’t enough to go around!

Ibuyers, realtors and investors are fighting for new listings. Homes that are being sold, don’t have new homes to replace them with. No wonder single family, and muti-family permits are on the rise. Pricing hasn’t reacted to the lack of supply… yet. Unless we see a large increase in supply, pricing will skyrocket. Need to start flipping before the prices go up? Hard money makes it easy to flip, rent, and rehab projects. Learn more about hard money here.

Arizona Leads The Nation In Rentals

For many in Arizona, rentals are the best way to make money in real estate. Rents are rising all over the country, and Arizona ranks 4 times as the top states to rent in.

Scottsdale, Arizona, is the #1 city for households who want to rent, largely due to its quality of life, according to an analysis by WalletHub. THe Median rental in Scottsdale is $2,495, up from last years $2,300. An 8.5% increase from last year.

Among the top 10 cities, four of them are based in Arizona, With Scottsdale #1, Gilbert #4, Chandler #6, and Peoria #7.

Gilbert Rentals rose 9% last year. The median rent per month for apartments in Gilbert for was $1,750, up from $1,600 last year.  Chandler had a great year with a 7.8% increase in median rental prices, to $1,792 up from $1,662 last year.

Many were surprised to see Peoria on the list, with the lowest rents of the group. The Peoria median rent rate sits at $1,600 the most affordable of the group, and with last years media sitting at $1,495. Peoria saw a 7% increase in rental price from the year before.

More investors are looking for hard money for their rentals. Finding a rental, upgrading it, and making money right away. Our rental checklist makes it easy to find your next real estate investment. Get the Ultimate Rental Checklist here. Pick the right rental, repairs, and attract tenants with this great guide.

Mortgage Rates Drop

Great news for home buyers. Mortgage rates have hit a 3 year low!

While the reason for the most recent dip in Mortgage rates comes with concerns of the potential global economic slowdown and some weak home sales news. This is great news for those looking to either refinance or purchase a new home.

According to the data released July 25th by Freddie Mac, the 30-year fixed-rate average fell to 3.75% with an average 0.5 point. It was 3.81%  just a week ago and 4.54% a year ago.

With mortgage rates changing like gas prices, now might be the time to lock homebuyers and current homeowners into this rate before it changes once again.

This ultimate guide for refinancing makes it easy for homeowners, and investors to find out the information they need.

Bridge Loans: How Investors Fill The Gaps

Refinancing isn’t just for homeowners.

Many real estate investors can find relief using Bridge loans to fill in their funding gaps when life gets in the way. Bridge loans are a hard money loan that makes refinancing your investment easy! Learn more about how you can use Bridge Loans in Arizona here.

New Builds On The Rise

Across the country, we are seeing an inventory problem. As we move out of peak selling months, and even seeing a mortgage rate drop, in the past weeks, the market is still favoring sellers all over Arizona. Despite the peak conditions, there simply is not enough homes on the market to meet the demand.

With less homes available, more buyers are turning to new builds to get into homes. 2019 has produced 12,028 single-family permits across Maricopa and Pinal counties, according to the US Census Bureau. With custom finishes, and no bidding wars, and a severe lack of resale homes, New Builds will continue to attract would be buyers.

Not only are single family homes being built faster than ever, Multi-family permits have come back with a vengeance. In fact, more multi-family permits have been given this year than any other year since 2007! No doubt multi-family homes are on the rise with Ariona high migration, low cost of living, and lack of homes!  Real estate investors are looking to compete with new builds by using hard money to rehab their properties.

Cities To Watch

With lower rates, better returns on flips, higher rental rates and builds, deciding on the best city for your investments is key. When using hard money picking the best location will see higher returns. These 2 cities, show high growth in the past month, and favor sellers.

Peoria Leaps Ahead

With so many cities improving in July, Peoria aw on of the highest CMI increases, 18% last month. Peoria may be the investing hub you overlooked.

Like all Arizona cities, Peoria has limited inventory, with only 1,092 resale and new homes in Peoria available on Trulia at this time. With a limited inventory, Peoria has seen strong increases and the market is favoring sellers.  Trends in Peoria show a 5% year-over-year rise in median sales price.

The median sales price for homes in Peoria for May 1 to Jul 31 was $315,000 based on 1,159 home sales. Average price per square foot for Peoria was $157, an increase of 5% compared to the same period last year. With 82% of residents being homeowners, and an average income of $62,235 flips, or home rentals would do well here!

The median rent per month for apartments in Peoria for Jun 28 to Jul 28 was $1,595. Rentals have increased by $90 dollars per month. Learn more about Peoria hard money and investments here.

Mesa Holds It’s #2 Spot

Mesa has been a strong performer over the last few weeks. Like most Cities in Arizona, Mesa is stronger than ever, and favoring sellers. Despite the recent improvements by other cities, Mesa CMI Improved by 8% last week, securing it #2 spot with a CMI of 229!

Mesa, Phoenix, and Scottsdale were listed as The 2nd top metropolitan areas for numeric growth. Meaning more people are moving to this area from ever before. With lower inventory all across Arizona, Mesa checks in with historically low inventory with under 700 listings available.

It is a great time to have investments in Mesa. The median sales price for homes in Mesa was $259,900. Average price per square foot for Mesa was $161, an increase of 7% compared to the same period last year. The median rent per month rose as well, and the average rent is $1,599, one of the highest rents in Arizona. Mesa hard money makes it easy to get approved and funded for your Mesa Investment fast.

Summary:

With the fast moving real estate market, finding the best investments and working the market to your favor is tricky. Keep a close eye on these trends, and use hard money to make the most of your real estate investments.

  1. Arizona Is For Sellers: Due to the low supply, the market is favoring sellers in almost every major city.
  2. Arizona Offers The Best Rentals: Arizona cities lead the nations in rentals, and show no signs of slowing down.
  3. Mortgage Rates Drop: Mortgage rates hit their lowest number in 3 years! Now is the time to refinancing your investment, even with a hard money loan.
  4. New Builds On The Rise: Due to lack of inventory, more buyers are choosing to build their own homes. Investors will have to compete with the builds by adding more features with hard money.
  5. Mesa And Peoria Are Cities To Watch: These cities show strong growth. Investing in these areas, renting or selling, can see large returns.

What’s Real Estate Trend We Missed?

Prime Plus Mortgages

Prime Plus Mortgages

Prime Plus Mortgages is a licensed hard money lender. We specialize in hard money loans, bridge loans, fix and flip loans, home rehab loans, for developers, property flippers and buy-and-hold strategists. HML programs make private money available for small to medium scale projects.

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