What’s the availability of SFH rentals in the area? At times in the past it’s been very low in that area. I don’t know how much investor action there’s been there over the last couple years.
Over the last couple weeks I’ve touched base with about a dozen property managers here in Phoenix, and it’s not looking pretty. I’m sure there’s been a lot more PE money here than in SD (if there’s been any in SD?). But from what I’m hearing is all those great plans for sweet cash flow isn’t quite materializing. Rents have fallen in much of the west valley, and even softened in the higher rent east valley.
One guy I talked with said he thinks the PE guys are struggling to get 50% occupancy. Not horrible if they’ve been here for 90 days, but some have been here for more than a couple years already. Unlikely it’s a lot better for individual investors. And with spring upon us, we’re maybe a month away from turning the A/C on.
Inventory issues could reverse pretty quickly, though in a very different way than 5 years ago. Cash buyers don’t suddenly become distressed sellers. Just anecdotal, but I saw a lot more open house signs this past weekend than I’ve seen in more than a year.
