The July affidavits in Maricopa County showed a significant reduction in demand from investors.

Of the 7,175 closed transactions, only 18.9% were marked as intended for renting to a third party. The same percentage in June was 22.1%.

In unit counts, purchases to be used as rentals fell by 35% from 2,094 in June to 1,355 in July.

This is a second wave of demand reduction. The first wave was caused by much higher interest rates discouraging buyers for their own occupation. The buyers leaving in the second wave are less affected by interest rates since they mostly pay cash. They are probably getting discouraged by the new direction the market has taken since April.

Market insights provided by the Cromford report.