December 20 - We are noting a significant drop in the number of new rental listings being added to the ARMLS database. Year to date in 2015 we have counted 38,140 new listings, which is 16% down from the 45,553 we had counted on December 20, 2014. This was already down 15% from the 53,333 on December 2013.
The decline has accelerated. in the last 4 weeks as new listings are down over 29% from the same point in 2014 - only 2,280 versus 3,217. Turning to closed leases, these are down to 2,282 per month from 2,760. That is a 17% decline. The count of active listings is down even more - 33% lower than last year. The average rent for an active listing is $1,842. Last year on December 20 it was $1,640. Average asking price was 84.1 cents per sq ft 12 months ago and it is now 94.7 cents, up almost 12%.
All the above numbers exclude vacation rentals.
We conclude that either the popularity of the MLS for rentals listing is waning fast or the rental market is less actively turning over due to unusually low supply, similar to the low end of the resale market.
It could be both. If it is easier than normal to find tenants then there is less motivation to go to the bother of creating an MLS listing.
December 19 - The listing success rate has improved quite sharply over the last 3 weeks, particularly for the higher price ranges. This is encouraging, but we should not get too excited until we get to the first week of January. We usually see a lot of expiring listings on December 31, so the picture may not look quite so rosy once they are added into the mix.
Despite this, it is a positive signal that the success rate has stopped its declining trend and started to improve again. I think it is fair to say this is another good omen for 2016.
Author:Dave Zajdzinski Phone: 480-332-6468 Dated: December 21st 2015 Views: 103 About Dave: ...
Dave Zajdzinski and the Z TEAM bring over 15 years of real estate experience to home buyers and sellers throughout Arizona. We have helped hundreds of families meet their real estate goals and Dave is consistently ranked one of the top realtors in the Valley. As a Certified Distressed Property Expert, Dave specializes in short sale transactions as well as traditional home sales. The Z TEAM is small enough to be personal throughout your sale yet large enough to handle any need with great detail.
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"During this difficult housing market, we had a higher-end property that we needed to sell. Dave Z met with us, assessed our situation, and then listed the property. Even though the market was rather dire, effectively used his various resources to enable many potential buyers to view and then bid on the property. After we found the right buyer, and received an offer that was acceptable, Dave then effectively negotiated with the bank to get the deal to go through. Although I had been told by attorneys that the banks would not budge on their initial offer, when Dave did the bank negotiation, he got the offer to go through. We are pleased customers. Thanks Dave."