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» VISIT US ONLINE @ DSNEWS.COM 15 HARDEST HIT AREAS LEAD THE WAY IN MARKET RECOVERY As the last ripples of the recession drift further away, it turns out that the areas that were hardest hit nearly a decade ago are leading the pace of housing recovery. is is especially true in Phoenix, where the homeownership rate in Q2 hit 63 percent, even as home prices continue rising, according to Ten-X Research. "Phoenix continues its remarkable recovery from the volatility of the housing market boom and bust cycle, where it was one of the hardest hit cities in the country," said Ten-X executive vice president Rick Sharga. "e city's strong underlying economic fundamentals of high employment, growing wages, and increasing population bode well for continued growth in the housing market." Existing home sales in Phoenix rose to 123,600 during the quarter. at's a 12.5 percent year-over-year increase, hitting a new cyclical peak, and surpassing the national average for the first time since early 2015. As it is in so many cities, inventory of homes for sale in Phoenix remains tight, even with a 7.2 percent uptick in available homes compared to a year ago. New home construction remained weak in Q2. Both housing starts and permits were down year-over-year. But home prices in Phoenix outpaced the nation. e city's median price jumped to a little more than $222,000, more than 8 percent above last year. at's still short of its peak, but was faster growth than most of the country. "Compared to other major metropolitan areas, Phoenix real estate remains relatively affordable, even as prices continue to rise," Sharga said. Part of the reason for such growth, he said, was the coinciding growth of certain professional sectors, namely financial and business services. Unemployment in Phoenix has also dropped to about 5 percent. One potential issue for continued housing market growth, however, is that Phoenix's total population includes above-average proportions of residents under 24 years old and over 65 years old, Ten-X reported. is puts a large number of people outside the parameters of the typical homebuyer, who is between 25 and 64. WINTER IS COMING… WITH LOWER INVESTMENT PROPERTY COSTS Soon, investors will find themselves purchasing more single-family rental properties due to the changing of seasons. e Seasonal Single-Family Rental Investment Advantage Report, generated by HomeUnion, revealed that the winter off-peak period is the best time of the year to acquire SFRs. e report also found that investors will pay 7.2 percent less per square foot during the winter than they would during the summer months for the same property. "Based on seasonal cap rate fluctuations, our study conclusively found that early winter is the best time to acquire SFRs," said Steve Hovland, director of research for HomeUnion. In many metros, median home prices drop substantially during the colder months, while rent losses were marginal for investors." e markets offering the best winter discounts for investment housing are Pittsburgh, San Francisco, Milwaukee, Philadelphia, and Chicago. Cities rounding off the top 10 are Columbus, Boston, Cincinnati, Cleveland, and Greenville, South Carolina. Many investors are cashing in on investment properties because of the lower prices that you typically wouldn't see during the warmer months. Tim Herriage, CEO of the 2020 REI Group, told DS News that winter is a great time to buy because investors are able to get a better deal. "Many investors and homeowners just check out during that time period. e law of supply and demand takes hold so if there's less demand, you're typically able to get a better bargain," he said. Because of the holiday season, investors are advised to deal with maintenance at the top of the year. D'Arcy Young, president at Residential Recovery Partners, said, "It's often difficult with the holidays to get labor and contractors to do the work that's required. It's best to buy before the end of the year and focus on the rehabilitation at the beginning of the new year." He also suggests winterizing the home yourself even if it has already been done for you. As the year concludes, investors are spotting industry trends and are creating other avenues to approach investment housing. "ere's a big distinction between the way most people think about investing in single- family housing and the way that the new industry is emerging," said Greg Rand, CEO of OwnAmerica. "2017 will be the first year where there are visible marketing campaigns from the industry to educate the world about investing in the housing market and buy performing and existing rental properties that already have people living in them."

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