By Mike Sunnucks | Rose Law Group Reporter
Real estate and housing expert Jim Belfiore is seeing a new trend in home buying arise in the East Valley.
“There are individual investors who are increasingly purchasing new homes in new home communities,” said Belfiore, who is president of Belfiore Real Estate Consulting.
Belfiore said those individual investors are buying new homes submarkets such as Gilbert and Mesa with the intention of renting them out to tenants.
“We are seeing an increasing number of rental signs in new home communities that weren’t even sold out yet,” he said.
The trend shows the demand for rental housing in the East Valley where there are have not been as many for-rent subdivisions being built as in the West Valley especially Goodyear, Avondale and west Phoenix.
Belfiore said he is not seeing home flippers or more institutional investors buying new homes in the East Valley to rent out. “They appear to be individuals,” he said.
Apartment rents have also been rising throughout the Phoenix region. That is encouraging some tenants to look at buying homes, but others could also be looking at renting single family homes.
Belfiore the buying of new homes to then rent out is a trend to watch especially considering the expected rise in home values and the role home flippers and investors played during the of the last real estate crash.
“This activity could be indicative of overheating,” said Belfiore.