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The Phoenix housing market, in particular, has a total of 372 foreclosures, all of which are to be sold at auction. Therefore, investors in the Arizona housing market should seek out local auctions if they hope to acquire properties under market value. Phoenix is leading the nation in home price increases, with prices up 29.3% year-over-year. ARMLS projects the median sales price to rise to $475,000 for June 2022 , and the average price is estimated to reach $596,300. Months supply of inventory for May was 1.68, up from last month when it was at 1.16 months. The recent rise in mortgage interest rates has had a significant impact on the real estate market, which is expected to stabilize prices.
In Sep '22 - Nov '22, 26% of Phoenix homebuyers searched to move out of Phoenix, while 74% looked to stay within the metropolitan area. The bottom line to all of this is that the Phoenix market is starting to favor buyers more than it did during the past two years. Home prices will almost certainly slow down, and could even dip during 2023. New listings are big part of the story so I included them in this graph.
What is the Zillow Home Values Index?
Buyers will have more inventory to choose from, and sellers likely won’t be selling their homes within hours of going on the market. First-time homebuyers will probably continue struggling to buy a home for a few more years. It’ll likely take until 2025 for first-time buyers to regain market share, a Zillow survey found. Those buyers represent just 27% of the market right now, according to the NAR.
In fact, the disruption created in the wake of the Coronavirus looks like it currently represents a new opportunity for long-term investors. While rehabbing remains an attractive exit strategy in Phoenix, building a rental property portfolio looks to be more advantageous at the moment. The median home value in the Phoenix real estate market has reached $427,586.
Phoenix Housing Market
Explore how many homes are likely to flood in nearby cities, compared to . Flood risk data is provided by Risk Factor™, a product of the nonprofit First Street Foundation. Risk Factor™ is a peer reviewed scientific model, designed to approximate flood risk and not intended to include all possible risks of flood.
None appear more attractive than building a proper rental property portfolio in the wake of a pandemic. Too many important market indicators are pointing towards becoming a buy-and-hold investor to ignore. Since then, however, real estate in Phoenix has made up a lot of ground.
Phoenix Migration & Relocation Trends
As they continue to compete for potential investment properties at the lower end of the market, the challenges for first-time homebuyers will remain. The homebuyers won’t be able to outbid real estate investors and would end up renting. Evaluate the specifics of the Phoenix housing market at the time you intend to purchase. The best place to buy rental property is about finding growing markets. Cities like Surprise and Glendale are good for investors looking to get started with rental property ownership at an affordable price.
There were 1,643 homes sold in September this year, down from 2,445 last year. Months supply of inventory for August was 3.56 with September at 3.57. Flood risk in Phoenix is increasing slower than the national average. 74% of Phoenix homebuyers searched to stay within the Phoenix metropolitan area. Los Angeles homebuyers searched to move into Phoenix more than any other metro followed by Seattle and Tucson. Across the nation, 3% of homebuyers searched to move into Phoenix from outside metros.
There were 1,228 homes sold in November this year, down from 2,235 last year. With so much information out there, starting a real estate business or LLC can be a complicated process. Our new online real estate class, hosted by expert investor Than Merrill, covers the basics you need to know to get started with real estate investing. These time-tested strategies can help teach you how to profit from the current opportunities in the real estate market.
This underproduction was magnified when construction virtually shut down during the recession of 2008. Since that time, construction has slowly increased but has not reached the level of production achieved before the recession. The current shortages of housing supply, relative to demand, are a primary reason housing costs are increasing. A significant increase in housing supply is necessary to keep pace with current and projected housing demand.
Single-family homes continue to drive the Arizona real estate market. In 2019, single-family homes grew by roughly 4% as compared to 2018. Particularly, previously-owned single-family houses compromise the majority of residential sales in the Arizona real estate market- approximately 80% of all sales. Annually, the number of previously-owned single-family homes is three to four times greater than new single-family home sales.
However, it is worth noting that the local real estate market has come a long way since then. Coming off of nearly a decade’s worth of appreciation, home prices are much higher today, and the same attractive profit margins investors coveted in 2012 are harder to come by. The section of Phoenix wedged between Seventh Street and Seventh Avenue is undergoing a wave of commercial redevelopment, fueled by more than five billion dollars invested to date. High-rise developments and mixed-use projects have been built, and several more are underway.
There are not suburbs to Chandler, because it is a suburb of Phoenix surrounded by other cities of similar size. However, Chandler has several points in its favor that make it a better choice for real estate investors than surrounding cities. The Chandler area offers strong market fundamentals in addition to a favorable tax and regulatory climate. To accommodate aging in place, they’ve loosened the rules on building “accessory dwelling units”, commonly known as mother-in-law suites. Buy a house, rehab it, and build a granny flat, and you have two rental properties for not much more than the price of one. And the city is almost certain to approve it because they want denser development.
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