survey of CAP rates and market conditions in US southwest

[John Tan]

Trying to find a place to invest in the southwest.  Can people fill in some info in your local market in the southwest?  i.e. in Phoenix, Tucson, Denver, Sacramento, Bakersfield, Salt lake?

My area, San Diego, CAP rate is 3.5 to 4% for an entry level SFH. Appreciated ~4.5% last year. Market is warm, though entry level SFH moves quick, those going for around $350k sells in 2-3 weeks if priced fairly. Not much competition from investors, mostly entry buyers for SFH. Outlook is slight increase, but wide variation in opinion on where we go from here. Inventory and volume are both really low, so there likely be high volatility depending if buyers or sellers emerge in the spring, personally see a small increase or aggressive appreciation if inventory stays low (2-3 months of current inventory).