As the leading Phoenix property management company, RPM is pleased with the release of the 2017 economic outlook for landlords. Here are some of the things that a Phoenix property owner can look forward to throughout the year.
Rising Rental Rates
Rental rates have increased for an extended period of time now; however, in 2017 these rates will continue to surpass the rate of inflation. Currently a three bedroom single-family rental home rents for an average of $1459 nationwide, but it is predicted this will increase to over $1500 in 2017. Inflation is predicted to exceed 2 percent this year, but will still lag the year over year rental increase of 4.8 percent.
Low Vacancy Rates
Vacancy rates were at 5.2% at the end of Q3 2016, which was slightly lower than the same period of 2015. We expect to see this number remain stable throughout 2017 as rental increases will stabilize demand.
Mortgage Rates on the Rise
The Federal Reserve announced that it will most likely continue to increase rates throughout 2017. We expect that the once 3% mortgage will increase to over 4% in 2017.
Foreclosures Remain Low
Currently, at 2.6% the foreclosure rate is the lowest it has been since August of 2007. This rate is expected to remain low in 2017 which will make it a challenge for investors to find those exceptional deals.
Housing Prices Increase Faster than Inflation
Through September 2016, home prices nationwide saw an increase of 5.39% and are likely to continue to grow in 2017. However, with increasing mortgage rates, homeowners looking to find a new home will find it more expensive which will make them hesitant to make a move. People staying where they are will limit the number of existing homes for sale.
How will these predictions affect your property investment in Phoenix? Overall, the market looks good for the industry in 2017, and landlords can look forward to another prosperous year.
RPMWV Phx has been offering full service Phoenix Real Estate & Phoenix Property Management services for over 20 years so let our experience assist yo
u with your Phoenix rental needs.
