Matt Manoogian On Phoenix Vacation Rentals & What’s Really Driving the Drop in Transactions

It’s no secret that transaction counts are down in the Phoenix market, and one might easily attribute it to economic conditions making it too hard to buy and sell. The truth is, the slow down has a lot more to do with what’s going on in the minds of consumers than what’s actually going on with real estate.  

When sellers think it’s a bad time to sell and buyers think it’s a bad time to buy, the market won’t move because everyone is afraid. It’s a vicious cycle that keeps reaffirming the story in the minds of buyers and sellers. The only thing that can cut through that is education and expertise from an agent who understands the numbers, knows how to negotiate and has the ability to lead the consumer to the best course of action for them. 

You’ll also learn;

• The easy button for vacation rentals 
• Why understanding market cycles and stats is so crucial for real estate professionals 
• What makes the Arizona market so resilient 

Key Points 

The short-term rental activity (03:47 – 13:21)

The Phoenix metro area has a ton of opportunities for investing in vacation rentals, but it’s very important to note that not every property is going to fit into the criteria of a profitable property. Areas like Scottsdale down to Old Town Scottsdale, Kierland are great, but only if there’s no HOA since they are clamping down on rentals that are less than 30 days. 

If you have no other option but to do a long-term – there are other options like corporate rentals where you can get a tenant for 3-6 months. 

Avoid adding to the fear in the market (15:36 – 21:44)

Only reasonable sellers can get a buyer for their homes right now. If you’re a seller thinking of putting your house on the market just to test it out, this would be the worst time to do that. All you’ll do is continue to perpetuate the conditions that have slowed down the market. When inventory keeps rising because the homes on the market are priced too high, it makes buyers nervous about taking action which grinds the market to a halt, and that’s what we’re seeing today. 

The interest rate isn’t a train smash (15:36 – 21:44)

It’s not a bad time to buy if you have an agent who knows how to negotiate concessions that make the purchase easier. Additionally, you might take some licks right now on your monthly payment due to interest rates, but if your goal is to be in the house long-term, you still have the chance to refinance when interest rates fall in the next couple of years. If you wait for interest rates to drop to buy, you might just end up paying a higher price, because the improved affordability means more people will be in the market so prices will end up being higher anyway. 

Guest Bio 

Matt Manoogian an entrepreneur, real estate consultant and co-founder of Good Company Real Estate and Good Life Vacation Homes. 

For more information head to https://www.goodlifevacations.com/ and call 480-682-7533.