Is Phoenix Arizona a good market?

Question

Hi,

I am looking for alternative markets to purchase property in and I heard Phoenix and the surrounding cities may be a good market. I was hoping to get insight from everyone.

Ken M. · Answer

Yes, it was.I'm still finding "off market" deals, but it's a lot of work.

What's the point of buying overpriced properties, in a declining market that don't cash flow? Isn't that going in the wrong direction?

The local MLS had 2,244 properties under $550,000 and over 90 DOM in April, it is now 3,014 properties. Lots of people are simply taking their properties "off" the MLS rather than reduce their asking price and face the realties of a declining market.

Melissa Justice · Answer

@Mike Schelske,

I’m a licensed agent in the “Valley,” as we affectionately call the Phoenix metro area. The market here is gradually shifting toward a buyer’s market, which is fantastic news for investors. Phoenix remains the 5th largest city in the country, offering strong long-term growth potential. While cash-flowing deals can be limited right now, focusing on holding properties for appreciation is a smart strategy.Feel free to DM me if you want to chat more about opportunities.

Doug McVinua · Answer

It depends on your goals. If you are looking for immediate cash flow or appreciation, Phoenix may not be the best spot to park your cash at the moment. If you are a longer-term growth strategy and looking for a market with population and job growth, Phoenix might be a good play.

The greater Phoenix area is experiencing significant employment growth. Thousands of jobs are coming online, and nothing drives long-term growth like income and population growth.

Where I happen to live in Queen Creek LG is about 65% towards completion of a new battery plant with a 2nd one planned. Just the first one is over 2000 jobs, and the hiring is just getting started. Apple, Google, and Facebook all have recently completed data centers in the area. Taiwan Semiconductor is building like crazy and continues to hire, and we are also seeing many supplier companies building to support them.

We manage multiple properties for Bay Area investors who only wish they owned more properties in the area.

Noah Corwick · Answer

Finding cash flow properties is honestly tough right now overall in PHX + there are around x2.5 more sellers than buyers as well.

PHX is indeed cooling, yet still is a top 20 most moved to city in the US + is expanding like crazy in the northwest and southeast valleys. So it's in a bit of an odd place at the moment.

If you are in it for the mid/long haul, PHX is a pretty solid market. If short term, maybe look elsewhere.

V.G Jason · Answer

Short answer yes. All RE is a long term hold. Phoenix is an excellent long term play.

Ken M. · Answer

How "long" is "long term"? Plus, if a better choice exists, doesn't it make sense to choose the better choice? Plus, it's a matter of "how" you buy a property that determines what makes for a "good" long term investment. I'm currently acquiring a "good" long term investment in Phoenix using "Subject To" at 3% interest to cash flow a property with 10% existing equity for an investor from California. That make's it a very interesting "long term investment" even in today's market, especially compared to "long term" investing in California losing money every month.I've always believed that cash flowing a property in Phoenix and seeing additional appreciation, trumps a negative cash flowing property in California. Just my personal experience.

Ken M. · Answer

Even the over $1,000,000 is slowing now.

Don't get me wrong, I am finding $300,000 properties and buying them "Subject To" with an interest rate of 3% and 10% equity built in that I am selling to my California investors list, that are actually well capitalized investors.  But, it's work. It didn't used to be work to find them. Now it is. At 3%, they cash flow.

Mike Schelske · Answer

Hi Ken,

Thank you for the reality check. My reason for purchasing is to buy and hold a multi family property and house hack. Like dividends in stocks I don't mind paying more. I'm new to this still. What happens during a declining market? From my research Phx was experiencing a boom but that cycle naturally ended now its on a decline. So theoretically the market should pick up in a few years and I am able to afford a new place. And I'd positioned perfectly once the market corrects to buy, sell, flip. Or I could be nuts.

Is Phoenix Arizona a good market?

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