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What Are The Phoenix Housing Market Predictions For 2019?

Phoenix Real Estate Market Predictions 2019

The Phoenix real estate market was a headline in the news a decade ago when the housing crisis of 2007 and 2008 caused home values here to fall by as much as half. The slow recovery of the national housing market has taken a decade. Many may be surprised to hear that the Phoenix housing market is back on the recommended list for investors. Let’s take a look at the current state of Phoenix before sharing ten reasons to invest in the Phoenix real estate market.

Phoenix remains the biggest city of Arizona and the state’s capital. However, Phoenix itself is massive. It is the only state capital with more than a million people. It is the fifth largest city in the country. The Phoenix housing market, though, is much larger than Phoenix – it encompasses the entire Valley of the Sun, Phoenix’s sprawling suburbs that are home to another five million people. That makes the Phoenix metro area the twelfth largest in the country. Let’s look at the top ten reasons to invest in the Phoenix real estate market.

Phoenix Real Estate Market

Phoenix Real Estate Market Forecast 2019

As per real estate company named Zillow, the median home value in Phoenix is $235,200. Phoenix home values have gone up 8.4% over the past year and Zillow predicts they will rise 4.3% within the next year. The median list price per square foot in Phoenix is $167, which is higher than the Phoenix-Mesa-Scottsdale Metro average of $158. The median price of homes currently listed in Phoenix is $279,650 while the median price of homes that sold is $239,300. The median rent price in Phoenix is $1,397, which is lower than the Phoenix-Mesa-Scottsdale Metro median of $1,475. The national economy is super strong and the number of people moving into Phoenix is finally strong again after tanking during the Great Recession.

Phoenix Real Estate Market Forecast 2019

Graph Courtesy – Zillow.com

Phoenix Real Estate Market Trend 2018

Let us find out how is Phoenix real estate market doing in 2018. Phoenix real estate market trends indicate an increase of $16,000 (7%) in median home sales and a -3% drop in median rent per month over the past year. As per Trulia, the average price per square foot for this same period rose to $162, up from $148. Trulia has 4,606 resale and new homes in Phoenix lined up for you, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. Average price per square foot for Phoenix was $162, an increase of 9% compared to the same period last year. The median rent per month for apartments in Phoenix for Sep 22 to Oct 22 was $1,450. The median sales price for homes in Phoenix for Jul 18 to Oct 17 was $239,000 based on 5,157 home sales.

Phoenix Housing Market Trends

Graph Courtesy – Trulia.com

Phoenix Arizona Real Estate Market Summary

  • Median Sales Price: $239,000
  • Price Per Sqft: $162
  • Homes For Sale on Trulia: 4,606
  • Median Rent Per Month: $1,450
  • Median Household Income: $43,150
  • Home Owners: 61%
  • Single Residents: 35%
  • Median Age: 33
  • College Educated: 28%

As per Movoto.com, the median list price in Phoenix is $319,900. The median list price in Phoenix went down 1% from October to November. Phoenix’s home resale inventories is 3,943, which increased 5 percent since October 2018. The median list price per square foot in Phoenix is $180. October 2018 was $179. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in November.

Phoenix Real Estate Market Trend 2018

Graph Courtesy – Movoto.com

Phoenix AZ Single Family Homes Market Summary

Single family homes continue to drive the Arizona real estate market in 2018. As compared to last year, single family homes grew by 4%. 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 are three to four times greater than new single family home sales. As a matter of fact, the Phoenix real estate market is of the top performing, not only in the Arizona real estate market but nationwide as well.

As per Neigborhoodscout.com’s real estate data for Phoenix, single-family detached homes are the single most common housing type in Phoenix, accounting for 60.80% of the city’s housing units. Other types of housing that are prevalent in Phoenix include large apartment complexes or high rise apartments ( 25.33%), duplexes, homes converted to apartments or other small apartment buildings ( 6.50%), and a few row houses and other attached homes ( 4.12%). The most prevalent building size and type in Phoenix are three and four bedroom dwellings, chiefly found in single-family detached homes. The city has a mixture of owners and renters, with 52.08% owning and 47.92% renting.

Phoenix Home Prices And Appreciation Rates

Arizona real estate market has been thriving this year. The favorable living conditions have, furthermore, comforted real estate investors and buyers to invest in Arizona real estate market. Phoenix home prices were up 9.5% over the last year (July to July). Prices are up 17.8% since two years ago and 145% since prices bottomed out in May 2011. On the other hand, Phoenix home prices are now only back to where they were at the top of the real estate bubble in 2006, 12 years ago. If you take into account inflation, however, Phoenix home prices are still 20% below the inflation-adjusted peak in 2005.

Real estate appreciation rates in Phoenix’s have tracked to near the national average over the last then years, with the annual appreciation rate averaging 0.74% during the period. As per Neigborhoodscout.com, appreciation rates are so strong in Phoenix that despite a nationwide downturn in the housing market, Phoenix real estate has continued to appreciate in value faster than most communities. Looking at just the latest twelve months, Phoenix appreciation rates continue to be some of the highest in America, at 8.49%, which is higher than appreciation rates in 89.96% of the cities and towns in the nation. Based on the last twelve months, short-term real estate investors have found good fortune in Phoenix. Phoenix appreciation rates in the latest quarter were at 2.22%, which equates to an annual appreciation rate of 9.17%.

Current trends fairly predict that the Phoenix home prices and appreciation rates in 2019 are very likely to be even higher than in 2018. Some real estate experts think that the median home prices will increase by at least 25% in 2019 and the upcoming few years. Despite the increase in property prices, the Phoenix real estate market remains much more affordable than other places.

10 Highest Appreciating Phoenix Neighborhoods Since 2000: By Neigborhoodscout.com

Phoenix has been one of the highest appreciating communities not only in Arizona but in the nation as well for the latest quarter of 2018. Here are the 10 most appreciating neighborhoods in Phoenix.

  1. E Camelback Rd / N 32nd Pl
  2. Paradise View Mobile Home Park / Shady Ranch Trailer Lodge
  3. E Camelback Rd / N 56th St
  4. N 40th St / E Glenrosa Ave
  5. N 14th St / E Fillmore St
  6. W Happy Valley Rd / N 49th Ave
  7. E Mcdowell Rd / N 14th St
  8. N 16th St / E Bethany Home Rd
  9. E Indian School Rd / N 50th Pl
  10. Bronze Boot / Thomas Trailer Court

Phoenix Real Estate Foreclosures And Short Sales Summary

Foreclosures will be a factor impacting home values in the next several years. In Phoenix 0.3 homes are foreclosed (per 10,000). This is the same as the Phoenix-Mesa-Scottsdale Metro value of 0.3. The percent of delinquent mortgages in Phoenix is 0.6%, which is lower than the national value of 1.1%. With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth. The percent of Phoenix homeowners underwater on their mortgage is 7.4%, which is higher than Phoenix-Mesa-Scottsdale Metro at 7.1%.

On RealtyTrac, there are currently 2,573 properties in Phoenix, AZ that are in some stage of foreclosure (default, auction or bank owned) while the number of homes listed for sale on RealtyTrac is 4,259. In September, the number of properties that received a foreclosure filing in Phoenix, AZ was 28% lower than the previous month and 27% lower than the same time last year. Home sales in Phoenix, AZ for August 2018 were down 63% compared with the previous month, and down 7% compared with a year ago. The median sales price of a non-distressed home in Phoenix, AZ was $239,000. The median sales price of a foreclosure home in Phoenix, AZ was $0, or 0% higher than non-distressed home sales.

10 Reasons to Invest in the Phoenix Real Estate Market In 2019

1. The Major Wave of Renovation in Downtown

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. Public transit in this area is significantly improved. That is making this area and neighborhoods bordering it an excellent place to invest in the Phoenix housing market.

2. The Dozen Other Development Opportunities

Phoenix isn’t just redeveloping downtown to create a dense, walkable urban core. It is cultivating fifteen complete walkable communities across the metro area with strong public transit, denser housing, and locally provided services. This is a radical shift from the suburban sprawl the area has long been known for.

3. The Large Student Market

The capital of any state will be home to its flagship university, and Phoenix is no exception. Phoenix is so large that it doesn’t just host the flagship Arizona State University campus in Tempe. There are secondary campuses in downtown Phoenix, northwest Phoenix and neighboring Glendale. These schools alone have more than seventy thousand students. The Arizona Summit Law School, Grand Canyon University and a number of others are located here. There are easily 100,000 college students renting in the Phoenix housing market. You could invest in large single family homes or multi-unit buildings to rent to students at any of these campuses.

4. The Large Tourist Population

There are more than 200 of these golf courses in Arizona, but most are located in and around the Valley of the Sun. There are a number of sports teams located in Phoenix and a wealth of tourist attractions. What makes Arizona unusual is the state’s open relationship with rental sites like AirBnB. A law that went into effect in 2016 made Arizona a leader in AirBnB rentals. The sites are required to collect taxes on the rentals, simplifying revenue collection for the state and the landlords. That probably explains why AirBnB guests grew by 150% in 2016 alone. This makes Arizona a great place to buy a single family home or condo to rent out to tourists.

5. The Massive Snowbird Market

The snowbird movement is somewhat different than the conventional tourist market. Arizona has long attracted retirees who couldn’t afford Florida or wanted cleaner, allergy free air that never included storm clouds. Quartzite, Arizona in particular draws two million snowbirds and tourists. The city stands out for its sixty plus RV parks. An estimated 300,000 people stay all winter before returning home. Some own second homes in Arizona communities restricted to active adults, while others stay in trailer parks. This creates an unusually diverse opportunity for those considering investing in the Phoenix real estate market.

6. The Growing Retiree Market

The same things that attract many people to Phoenix as snowbirds causes many to retire here permanently. This means that many snowbirds end up staying permanently in the Phoenix housing market. Sun City stands out as a mecca for seasonal and year-round retirees, but it is far from the only retirement community in the Phoenix real estate market. The aging of the U.S. population makes investing in communities catering to older adults an excellent idea.

7. It Is Landlord Friendly

If you want to invest in real estate, you typically want to do so in a market where you can quickly evict people who don’t pay their rent or damage property. You’ll be glad to know that the Phoenix real estate market is among these compared to surrounding states. Arizona, unlike California, allows landlords to serve an unconditional quit notice. If the tenant violates the rental agreement or doesn’t pay rent, they can be evicted quickly. Renter-friendly rules like requiring a landlord to return a rental deposit within two weeks are not a burden. Conversely, laws that say you can evict a tenant within ten days for lying on a rental application are a definite plus.

8. It Has Low Taxes

Kiplinger listed Arizona as the 8th most tax-friendly state in the U.S. in 2018.The state income tax is 2.59% for low income earners, 4.54% for wealthier families. The median home is worth around $177,000 and came with a property tax bill of around $1400, well below what you’d pay in Texas. Arizona has been lowering its capital gains tax rate, as well. The state has a relatively low transfer tax on deeds or land contracts, too.

9. You Can Find Cheap Property across the Market

While California and Florida are seen as hot real estate markets, one of the major attractions of the Phoenix real estate market is the affordable real estate. The median home is worth $177,000. The prices in the Phoenix real estate market are a little higher. Homes in the Phoenix housing market are approaching the 2006 record. But before you panic, remember that you have more than a decade of inflation to erode the value of that $300,000 price tag compared to what it was worth at the peak. Just for the record, that puts the median Phoenix home’s value at $260,000. That’s still cheaper than a starter home in coastal California. Don’t forget that the large retiree market means there is actually strong demand for one and two bedroom houses and condos here, and those units are a fraction of the cost of a three bedroom home.

10. Value-Added Enhancements Are Frequently an Option

Suppose you buy a house to renovate and rent out. Phoenix deals with a large retiree population, both permanent and seasonal. To accommodate aging in place, they’ve loosened the rules on building “accessory dwelling units”, commonly known as mother-in-law suites. The city also recognizes the need for affordable housing, and they allow people to build and rent out ADUs as affordable housing, especially if the property is within walking distance of public transit. 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.

Investing In The Phoenix Housing Market: The Conclusion

Phoenix Housing Market

If you are a beginner in the business of real estate investing, it very important to read good books on real estate. You must also learn from successful real estate investors who have retired early on in their lives by investing in some of the hottest real estate markets. The strong US real estate market shows no signs of slowing, and is slated to remain among the world’s top performers in 2019. Phoenix housing market is one of the hottest markets for 2019. Don’t let memories of the Great Recession bust that cut home values in the Phoenix housing market keep you away. There are plenty of reasons to invest in the Phoenix real estate market, only ten of which we’ve provided here. We encourage that you invest in Phoenix real estate market today before prices rise higher. Have a look at the Phoenix real estate market numbers we have provided from various real estate sources and make the best possible decision for yourself.

Similarly, Charlotte housing market forecast 2019 is that it is going to be a hot investment destination for new real estate investors. Charlotte is the largest city in North Carolina. The city proper is home to more than 800,000 people. The metropolitan area is even larger – home to roughly two and a half million people. It is one of the country’s fastest growing metro areas, and it was the second fastest growing city in the southeastern United States. Only Jacksonville, Florida was growing faster between 2004 and 2014. One advantage to living in a big city like Charlotte is the constant demand for homes. Buying a home in Charlotte is a better investment, depending upon several factors. There are so many major companies and professional sporting events that people will always be interested in residing here. Therefore, interested investors aren’t likely to allow the listing prices to get to low before they swoop in and take advantage.

Another hot market for 2019 and upcoming years is going to be the Miami real estate market. The Miami real estate market offers diverse opportunities to real estate investors, allowing you to choose which rental markets you want to cater to and profit from. However, that isn’t reason enough to consider investing in the Miami real estate market.  According to a report published by Zillow in Dec 2017, Miami was the country’s fourth most valuable housing market. Trailing only Los Angeles (total value of $2.7 trillion), New York (2.6 trillion), and Washington (996.7 trillion), the total value of Miami’s housing market is an estimated 864.2 billion, which represents a solid 4.7 percent increase year over year. Miami real estate market predictions show us that the prices will rise 3.6% within the next year.

Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you can fill up the form given here. One of our investment specialists will get in touch with you. Norada Real Estate Investments helps take the guesswork out of real estate investing.  We can help you succeed by minimizing risk and maximizing profitability.


References:

Renovation
https://azbigmedia.com/7-projects-between-the-7s-in-downtown-phoenix/
https://azbigmedia.com/downtown-phoenix-development-makes-it-harder-to-find-a-place-to-live/

Granny flats / ADUs
http://www.friends.org/latest/accessory-dwelling-units-are-cities-and-counties-doing-enough
https://www.phoenix.gov/sustainability/transportation

15 redevelopment sites
https://www.phoenix.gov/sustainability/transportation
https://www.curbed.com/2016/11/4/13518302/downtown-phoenix-real-estate-urban-planning-devleopment

Student market
https://en.wikipedia.org/wiki/Phoenix,_Arizona#Post-secondary_education

State of Phoenix
https://en.wikipedia.org/wiki/Phoenix,_Arizona

Landlord friendliness
http://capstonecapitalusa.com/the-most-friendly-8-landlord-states      https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters

Snowbirds
https://universe.byu.edu/2017/02/22/this-tiny-arizona-desert-town-is-a-retirement-mecca-for-2-million-human-snowbirds/
https://www.azcentral.com/story/news/local/mesa/2015/01/20/phoenix-area-snowbirds-easily-seen-tracking-financial-impact/22034575/

Full time snowbird / permanent retirees
https://www.tripsavvy.com/what-is-a-snowbird-2683049

Tourism/Airbnb
https://www.azcentral.com/story/news/politics/legislature/2016/07/27/airbnb-arizona-benefits/86314492/
https://www.bizjournals.com/phoenix/news/2017/02/15/exclusive-airbnb-hosts-in-arizona-earned-51m-in.html

Low taxes
https://www.kiplinger.com/slideshow/taxes/T006-S001-10-tax-friendly-states/index.html
https://yourbusiness.azcentral.com/percent-taxes-pay-selling-real-estate-17380.html

Cheap property
https://news.azpm.org/p/news-articles/2017/6/8/111864-arizona-housing-back-on-pace-after-housing-meltdown/

Market Trends And Forecast                                                                                            https://www.zillow.com/Phoenix-az/home-values                    https://www.realtytrac.com/statsandtrends/az/maricopa-county/phoenix https://www.trulia.com/real_estate/Phoenix-Arizona                                                  https://www.movoto.com/phoenix-az/market-trends                https://www.neighborhoodscout.com/az/phoenix/real-estate              https://arizonarealestatenotebook.com/phoenix-housing-market-predictions-2019 https://www.mashvisor.com/blog/arizona-real-estate-market-2018-the-place-to-invest-this-year


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