http://www.realestatesmarttalk.com/distressed-housing/arizona-foreclosures-highlight-industry-wide-problems/ Just another WordPress weblog Fri, 04 Sep 2009 21:44:02 -0500 http://wordpress.org/?v=2.8.4 hourly 1 http://www.realestatesmarttalk.com/distressed-housing/arizona-foreclosures-highlight-industry-wide-problems/comment-page-1/#comment-5 Sean Mills Fri, 04 Sep 2009 21:44:02 +0000 http://www.realestatesmarttalk.com/?p=204#comment-5 In a short answer, no. But I am not sure they are looking that deeply at the economy in a macro sense. There are several facotrs weighting in when it comes to these groups. The flippers are just playing musical chairs hoping not to get stuck standing when the music stop, ie the market adjusts negatively. Traditionally, the people who rent houses are former home owners or people who have gotten used to the additional amenities of say more yard space and a garage. Class A and B renters of apartment buildings are used to a better life than the lower renters who are more price sensitive to rents. The upper class doesn't mind spending for the "better life". Our research points to the lack of inventory for upper end apartments in the areas where the newest supply of homes have been built. Remember the highest and best use of the land for 10 years or so in the Phoenix market was for SFRs.-Sean In a short answer, no. But I am not sure they are looking that deeply at the economy in a macro sense. There are several facotrs weighting in when it comes to these groups. The flippers are just playing musical chairs hoping not to get stuck standing when the music stop, ie the market adjusts negatively. Traditionally, the people who rent houses are former home owners or people who have gotten used to the additional amenities of say more yard space and a garage.
Class A and B renters of apartment buildings are used to a better life than the lower renters who are more price sensitive to rents. The upper class doesn’t mind spending for the “better life”. Our research points to the lack of inventory for upper end apartments in the areas where the newest supply of homes have been built. Remember the highest and best use of the land for 10 years or so in the Phoenix market was for SFRs.-Sean

]]> http://www.realestatesmarttalk.com/distressed-housing/arizona-foreclosures-highlight-industry-wide-problems/comment-page-1/#comment-4 Kyle Fri, 04 Sep 2009 20:18:39 +0000 http://www.realestatesmarttalk.com/?p=204#comment-4 Do you think the groups that are buying SFR's in Phoenix are factoring in an even weaker rental market? Seems that if/when the institutional apartment properties (both Class A and B, respectively) come on line with new owners who can fill them up with more concessions and lower rent, the houses will have to adjust to compete. Do you think the groups that are buying SFR’s in Phoenix are factoring in an even weaker rental market? Seems that if/when the institutional apartment properties (both Class A and B, respectively) come on line with new owners who can fill them up with more concessions and lower rent, the houses will have to adjust to compete.

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