By Mike Sunnucks | Rose Law Group Reporter
Investors — who interested in buying and then renting out single family homes — are showing up again in the Phoenix real estate market.
That is according to real estate expert Jim Belfiore.
“There is a lot more investor activity,” said Belfiore, who is president of Belfiore Real Estate Consulting.
Belfiore has seen new investor activity in Buckeye but added investor groups are interested in potential home purchase across the Valley including new homes. “I think that demand is everywhere,” he said.
Belfiore is not a fan of the investor activity and stressed the housing market is already seeing high demand for home and low inventories.
“From my perspective that is not a positive thing That is a negative thing,” Belfiore said of investor activity.
“It is artificial demand. It creates risk for the future. They aren’t going to live in the homes. We have enough demand today. We don’t need to sell to investors,” Belfiore said.
Despite all the impacts of COVID-19, record low mortgage interest rates have continued to propel home sales in the Phoenix market.
Inventories are also low with some new home builders starting to turn to lotteries for potential buyers and a drop in existing homes listed for sale. The latter is in part due to homeowners and buyers being concerned by COVID and reticent about holding or attending open houses.
Belfiore said investors buying homes brings back memories of the last real estate bubble and he encourages builders to resist the sales
“There is enough demand to support your business by selling to primary buyers,” Belfiore said.