east valley
Volume 4 Issue 45 Mesa, AZ
May 22, 2021
Signs point to shift in Valley housing market – maybe BY PAUL MARYNIAK Tribune Executive Editor
H
IN THE BIZ
ome prices aren’t coming down, but sellers’ negotiating power apparently is as the market may be cooling faster than expected, according to the Valley’s leading analyst of the housing market. “Your negotiation power is dissipating at a rapid rate,” the Cromford Report warned sellers in a post last week. “It will take several months of this trend continuing to reach a balanced market, but this no longer looks like such a far-fetched idea.” And if you want to understand one of the factors influencing prices, the Cromford Report offers a suggestion: “Demand from investors for rentals now represents nearly 21% of all home sales.” “The reported intent of buyers has changed significantly over the past year,” it explains. “In Maricopa County, purchases for owner occupation as a primary residence have declined 19.4% between April 2021 and April 2022. Purchases as a second home have declined by 8.1%. In contrast, purchases to turn into a rental have increased by 8.5%.” And it suggests the actual percentage is likely higher, asserting that it’s likely some buyers are not being truthful in stating the reason for the home purchase on the affidavit of value that the state Revenue Department requires on every home transaction. “This is sure to be an undercount,” it states. That affidavit asks the buyer to list Public Notices ............... page 3 © Copyright, 2022 East Valley Tribune
whether the purchase is being made for a primary residence, to rent to someone other than a qualifying family member or as a second home. “Just a cursory inspection shows us that many unscrupulous investors are marking their Affidavits of Value as purchases of a primary residence, no doubt to attract lower taxes,” the Cromford Report states. “It is perjury to enter incorrect information on an Affidavit of Value and each of (USPS 004-616) is published weekly
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these documents are notarized. However, we are yet to hear of any government agency taking action to enforce the state laws surrounding Affidavits of Value.” The influence of investors on the rental market has been significant over the last year as real estate investment companies have been paying two, three and even greater times the price of an apartment complex than the seller paid within the last two to five years. Subscriptions are $26 for 2 years, $14 for one year. Periodicals postage paid at Phoenix, AZ 85026.
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