Phoenix has been one of the hottest real estate markets in the U.S. The Greater Phoenix housing market is looking extremely strong for the coming summer season. We shall be discussing the key housing indicators. May 2021 saw new records in both the average sales price ($504,600) as well as the median sales price ($390,000). Looking ahead to June 2021, the ARMLS Pending Price Index is projecting a median sales price of $400,000. When the June median sales price is reported it could be a year-over-year gain of 31.15%. Phoenix-area home prices are forecasted to continue to rise at a brisk pace for quite some time.

In May, closed sales were down 3.7% from the previous month while posting a growth of 33% from the previous year. Their data also shows that there was also a good supply of new listings in April, up 10.4% YTY. However, the total supply of properties is still not enough to meet the demand in the Greater Phoenix real estate market. Total active listings saw a month-over-month increase of 5.3% while year-over-year reflects a decrease of -43.1%. In fact, the months' supply of listings stands at 1.05. It means it would take about a month for the current inventory of homes on the Phoenix housing market to sell given the current sales pace.

A panel of Zillow's economists and real estate experts expect that Phoenix will be America’s second-hottest housing market in 2021. Austin, Texas heads a lineup of sunny and relatively affordable metro areas — Phoenix, Nashville, Tampa, and Denver — that are most likely to outperform the nation in home value growth in 2021. The top-five metros are all relatively affordable options compared to expensive coastal areas that have led to home appreciation ranks in recent years

The pandemic could only pause sales, which in turn created a huge pent-up demand. As we saw Arizona real estate market thriving & becoming sizzling hot in the past couple of years, even the rise in mortgage rates was believed not to affect it. Low-interest rates are helping boost but the inventory is sparse. High demand and low inventory have increased prices, which is a piece of good news if you plan on selling.

The slump in year-over-year sales in April and May impacted the numbers, but the market bounced back quickly. The Phoenix real estate market has not only recovered after a slump due to COVID-19 but the demand has reached new heights. January recorded the highest median sales price and the highest average sales price ever reported. An increase is forecasted in February for both average sales prices and median sales prices.

Despite the rise in new listings, the environment is extremely difficult for homebuyers in the Greater Phoenix housing market. As per the current trends, the Phoenix is all set to remain a seller's market in the next 12 months. The prediction is that the upward price trend will continue for the near and medium-term, making any price reductions in 2021 rather unlikely. From April 2011 to April 2021, Phoenix home prices have seen an appreciation rate of 237.84% based on the median sales price, according to ARMLS.

Arizona Housing Market Trends 2021

If you are considering moving to Arizona, Scottsdale, Phoenix, and Tucson are some of the top places to call home. According to Zillow Home Value Index (ZHVI), since 2012, Arizona housing prices have gone up nearly 151%. ZHVI is not the median price of homes that are sold in a month within a geographic region.

It is calculated by taking all estimated home values for a given region and month (Also called Zestimates), taking a median of those values, applying some adjustments to account for seasonality or errors in individual home estimates. It, therefore, represents the whole housing stock and not just the homes that list or sell in a given month.

By this calculation, the current typical home value of homes in Arizona is $344,718. It indicates that 50 percent of all housing stock in the area is worth more than $344,718 and 50 percent is worth less (adjusting for seasonal fluctuations and only includes the middle price tier of homes). In June 2020, the typical value of homes in Arizona was around $283,000.

Home values have gone up 22.7% over the past year and most likely they will continue to rise at a similar rate (double-digit appreciation) over the next twelve months. This also raises a bit of a concern that in Arizona wages are not keeping up with the rising costs of housing. When prices go up, some buyers can no longer afford to buy and drop out. The faster that pricing goes up, the more buyers tend to drop out, at least in a healthy market.

Arizona's housing market has over 900,000 renter households, accounting for 36% of the total number of households. According to a report from the National Low Income Housing Coalition (NLIHC), the rental prices in Arizona have become out of reach for many residents. For too many low-income workers, wages have not kept pace with rising rents and home prices. Workers need to make $21.10 an hour to afford a 2-bedroom rental at a fair-market rate.

In Arizona, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,097. To afford this level of rent and utilities — without paying more than 30% of income on housing — a household must earn $3,658 monthly or $43,892 annually. Assuming a 40-hour workweek, 52 weeks per year, this level of income translates into an hourly Housing Wage of $21.10.

The minimum wage in Arizona is $12.00/hr and the Average Renter Wage is $17.46. Cost-burdened is defined as spending more than 30% of one’s monthly income on housing and utilities. Neighborhoods in west and South Phoenix are most cost-burdened. In some cases, more than 50% of households are paying 30% or more of their income on housing costs, while less than 29% of renting households are housing cost-burdened in the north.

Flagstaff MSA is the most expensive MSA where you need an hourly wage of $24.35 to afford a 2-bedroom rental. The second most expensive is MSA is Phoenix-Mesa-Scottsdale, where you need an hourly wage of $22.56 to afford a 2-bedroom rental.

Between 2010 and 2018, the City of Phoenix’s median income increased by only 10%, while, median rent increased by over 28%, and the median home price increased by over 57% during this time. In 2018, half of Phoenix renters were considered housing-cost burdened, 25% of homeowners were housing-cost burdened and altogether 36% of the entire population is housing-cost burdened. According to a report by Phoenix.gov, 65 % of households that fall within or below the moderate-income range would require some amount of subsidy to achieve housing that is considered affordable at their income level.

Here's the current overview of the Arizona home prices by counties (source: Realtor.com)

Greater Phoenix Housing Market Trends 2021

It is a metropolitan area, centered on the city of Phoenix, which includes much of the central part of Arizona. The source of this report is the Arizona Regional Multiple Listing Service (ARMLS®). It gives the percent change in housing statistics of May 2021 when compared with May 2020. According to the report, an increase is forecasted in May 2021 for both average and median sales prices due to a huge gap between supply and demand.

Months Supply of Inventory (MSI) is a calculation that quantifies the relationship between supply and demand in a housing market. Generally, a balanced market will lie somewhere between four and six months of supply. If MSI is displayed as less than 4.0, sellers have the negotiation power. If MSI is above 6.0, buyers have the negotiation power. In Phoenix, it was 0.96 months for April 2021 and 1.05 months for May 2021, so it is a seller's market where there is an upward pull on home prices.

Maricopa County Housing Market Trends Q1-2021

Maricopa County is a county in Arizona and consists of 43 cities. It is the nation’s fastest-growing county, home to approximately four and a half million people. Maricopa County is also a seller's real estate market, which means that more people are looking to buy than there are homes available. Arizona Regional MLS includes Maricopa County and most of Pinal County. Here are the statistics for the Maricopa County housing market for Q4-2021 showing YoY Chg. Homes sold faster than the previous year as the median DOM was down – 32.5%.

Phoenix Real Estate Market Forecast 2021-2022

What could be the Phoenix real estate market predictions for 2021 & 2022? Phoenix is the 5th largest city in the country and continues to grow. New residents are drawn to Phoenix by its strong economy, relatively low cost of living, high quality of life, economic opportunity, and cultural attractions. Since 2000, Phoenix’s population has grown by 20% to included approximately 555,013 households and 1.6 million people.

It is the biggest city in Arizona and the state’s capital. It is a minimally walkable city in Maricopa County with a population of approximately 1,442,530 people. 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 is much larger than Phoenix itself – 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.

The favorable living conditions have, furthermore, comforted real estate investors and buyers to invest in Arizona real estate market. The Phoenix housing 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.

Since 2006, the population has grown faster than housing. This growth fueled by job growth has finally consumed the glut of re-sale housing created during the bubble years. Now the market is facing a shortage of homes for sale. Phoenix home prices were up by roughly 7% over the last twelve months. Despite the increase in property prices, the Phoenix real estate market remains much more affordable than other places.

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.

The Phoenix real estate market is of the top-performing, not only in the Arizona real estate market but nationwide as well. Phoenix has a mixture of owner-occupied and renter-occupied housing units for sale. According to Neigborhoodscout.com, a national real estate data provider, three and four-bedroom single-family detached are the most common housing units in Phoenix. Other types of housing that are prevalent in Phoenix include large apartment complexes, duplexes, rowhouses, and homes converted to apartments. Single-family homes account for about 60% of Phoenix's housing units.

Since 2012, housing prices in the Phoenix metro have appreciated by nearly 140% (ZILLOW HOME VALUE INDEX). Phoenix's housing market started so strong in 2020 that only something as drastic as the ongoing pandemic could have impeded the real estate sector. The year 2020 started with an extreme shortage of houses for sale, and an increasing number of sales over the asking price of property owners.

The current typical home value of homes in the Phoenix-Mesa-Scottsdale Metro is $367,484. It indicates that 50 percent of all housing stock in the area is worth more than $367,484 and 50 percent is worth less (adjusting for seasonal fluctuations and only includes the middle price tier of homes). In June 2020, the typical value of homes in Phoenix was around $300,000. Home values have gone up 23.5% over the past year alone. The Zillow Buyer-Seller Index considers Phoenix a sizzling hot seller’s real estate market.

Similar growth has been recorded by NeighborhoodScout.com as their data also shows that in the past ten years, Phoenix real estate appreciated by 156%. This amounts to an annual real estate appreciation of nearly 9%, which puts Phoenix in the top 10% nationally for real estate appreciation.

During the latest twelve months, Phoenix's appreciation rate has been 9.24%. In the latest quarter, the appreciation rate has been 2.51%, which annualizes to a rate of 10.41%. This figure also corroborates Zillow's positive forecast. It tells us that home prices in this region are expected to continue their growth in 2021 in double-digits. First-time home buyers will remain a strong force while younger Gen-Z buyers are expected to play a growing role in this housing market.

Here is the latest housing forecast for Phoenix, Metro Phoneix, and Maricopa County until April of 2022. There's good profit potential for the period of one year if you are looking for homes for sale with good flipping profit. It can be a profitable property investment opportunity if you can find a good deal. A long-term investment in Phoenix real estate will yield even greater profits.

• Phoenix-Mesa-Scottsdale Metro home values have gone up 23.5% over the past year and Zillow predicts they will rise 26.2% in the next twelve months.
• In the city of Phoenix, home values have gone up 24.6% over the past year and they will continue to rise in 2021.
• Maricopa County home values have gone up 23.4% over the past year and they will continue to rise in 2021.
• Mesa home values have gone up 23.2% over the past year and they will continue to rise in 2021.
• Scottsdale home values have gone up 23.3% over the past year and they will continue to rise in 2021.

The chart below, created by Zillow, shows the growth of median home values since 2011 and their forecast until May 2022. 

The first chart show below (by ARMLS) shows year-over-year appreciation for each of the last 20 years of reported data for April. The chart depicts the year-over-year changes in the average sales price as well as the year-over-year change in the median sales price. The average sales price increased 17 out of 20 years while the median sales price increased 16 out of 20 years.

The largest year-over-year increases took place in 2005 with the largest decline occurring in 2009. The median sales price rose 41.94% in 2005 and fell over 45% in 2009. In 2007, the year-over-year average price rose slightly while the median moved slightly downward.

By comparing the reported average and median sale prices for each year to the 2021 metrics, we can see the percentage change in prices based on the year the home was purchased. Anyone who purchased a home in April 2011 has seen an appreciation rate based on the median sales price of 237.84%. The lowest appreciation applies to buyers purchasing at the peak of the market in 2006. Their current appreciation is
47.06%.

The change in home prices for Phoenix-Mesa-Scottsdale, AZ is shown below for the three-time periods (data up to 3rd Quarter, 2018). The Phoenix Home Price Index has increased for the last 29 consecutive quarters. The highest annual change in the value of houses in the Phoenix Real Estate Market was 41% in the twelve months ended with the 4th Quarter of 2005. The worst annual change in home values in the Phoenix Market was -23% in the twelve months ended with the 4th Quarter of 2008.

The highest growth in home values in the Phoenix Real Estate Market over a three-year period was 81% in the three years ended with the 2nd Quarter of 2006. The worst performance over a three-year period in the Phoenix Market was -43% in the three years ended with the 2nd Quarter of 2010. For the upcoming updates, you can visit LittleBigHomes.com.

These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? It is quite evident that the ongoing pandemic has not had any major impact on Phoenix's housing market. However, it was quite expected that social distancing, higher unemployment, and lower overall economic activity would constrain real estate activity in the near term. And it did happen from May onwards. The shutdown has already resulted in 546,900 unemployment filings.

At the same time, the industry is adapting to the current environment by conducting business using technologies such as virtual showings and e-signing to help buyers and sellers with their housing needs in the face of these challenges. COVID-19’s impact on the Phoenix housing market was not that extreme. The Metro Phoenix housing market is extremely strong and has been hitting several new records in the last few days.

We can see that supply remains very low indeed (1.05 Months). However, the sellers have shown great zeal by putting up new listings last month. New inventory is up +10.4% year-over-year. This increase in new listings appears to be setting in for the long run, which is a little bit of good news for buyers.

What does it mean for homebuyers in Phoenix? The biggest mistake buyers make is sitting around waiting for sale prices to decline while their potential mortgage payment plummets. Mortgage rates have been on an upward journey for the past four weeks, and they continue into the 3% range as we write this. The average rate on a 30-year fixed-rate mortgage was 2.96% in May. This is the time for buyers to take advantage before they are increased again. Properties purchased today are expected to strongly appreciate by more than 20% over the next 12 months.

We have already discussed above the latest housing market report for the Phoenix area. It shows no sign of cooling off in 2021. The entire Greater Phoenix area is breaking records over records in sales prices. The start of 2020 was like a nightmare for regular homebuyers of Phoenix due to tight inventory and an increasing rate of price appreciation.

It's still a seller's real estate market in Phoenix. The Phoenix entire metro housing market is experiencing moderately strong demand but the supply of resale homes is so poor it crashes below record lows almost every week. In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero.

In terms of months of supply, Phoenix can become a buyer’s real estate market if the supply increases to more than five months of inventory. And that’s not going to happen. We can conclude that demand has not only recovered from the COVID-19 pandemic but has reached heights that make it very strong by any historical standard. Hence, Phoenix real estate market remains strong and skewed to sellers, due to a persistent imbalance in supply and demand.

Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Many variables could potentially impact the value of a home in Phoenix in 2021 (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets. Most of these variables are difficult to predict in advance. 

Phoenix Real Estate Foreclosure Trends

Here are some foreclosure statistics of the Phoenix real estate market. The distressed seller's market is becoming a non-factor in this region. According to ARMLS, for the 11th straight year, the number of properties entering the foreclosure process and the number of homes that were foreclosed has declined. In 2020 the number of foreclosures was the lowest in history. Of the 469 residential foreclosures in Maricopa County in 2020, 73% were purchased by third-party investors and 27% reverted to the beneficiary (bank). By the numbers, 343 were purchased by investors, and only 86 reverted to the lender.

The new federal government has signed a bill to extend an eviction and foreclosure moratorium on federally backed mortgages. After that, the U.S. Department of Housing and Urban Development also announced that they extended the moratorium through June 30, 2021. Even if the moratorium is lifted in July, actual foreclosures would not occur until the second half of 2021. The good thing is that homeowners with equity have options. The amount of equity a homeowner has is the number one determinant in deciding whether their property is lost to foreclosure. The current rapid rise in equity will be the largest deterrent to future foreclosure activity.

May 2021 data released by ARMLS shows that Distressed sales accounted for 0.3% of total sales, the same as the previous month. Short sales dropped -77.8% YTY while lender-owned sales dropped -35.3% YTY. Foreclosures pending month-over-month showed a decrease of -4.5% while the year-over-year figure was down -58.6%.

• 85034 – 1 in every 542 housing units
• 85009 – 1 in every 4797 housing units
• 85014 – 1 in every 4836 housing units
• 85037 – 1 in every 7692 housing units
• 85035 – 1 in every 7826 housing units

Phoenix Real Estate Investment: Should You Invest in Phoenix?

Should you consider Phoenix real estate investment? Many real estate investors have asked themselves if buying a property in Phoenix is a good investment? You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2020. If you are looking to make a profit, you don’t want to buy the most expensive property on the Phoenix real estate market and expect to make a good profit on rents. Perhaps you are looking for a slightly different hold-over, an investment property in Phoenix that you might move into or sell at retirement in the future. Either way, knowing your profit potential and purpose is the first thing to consider.

Let’s take a look at the number of positive things going on in the Phoenix real estate market which can help investors who are keen to buy an investment property in this city. We’ll address the biggest factor pulling people to the Phoenix housing market next.

Relatively Affordable Real Estate Market

While California and Florida are seen as hot real estate markets, one of the major attractions of the Phoenix real estate market is affordable real estate. During 2018 and 2019, Arizona was one of the top three states in the nation for population growth. Only Texas and Florida outpaced it, in terms of year-over-year growth.

Population growth is particularly high within the Phoenix metro area. Homes in the Phoenix housing market are approaching the 2006 record. Home-price appreciation appears to be slowing a bit in the Phoenix area and most experts agree that prices will continue to climb for the foreseeable future.

According to the U.S. Census Bureau data, the population for the city of Phoenix rose by nearly 15% from 2010 to 2019. That’s well above the nation’s growth rate for that same timeframe. Population growth increases the demand for housing on both the purchase and rental sides. With all other things being equal, steady population growth tends to put upward pressure on home prices.

The median home’s value has crossed $300,000 but that’s still cheaper than a starter home in coastal California. Don’t forget that the large retiree market means there is 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.

High Rate of Appreciation Due To Short Supply

Although Phoenix has experienced consistent population growth, the housing market has not grown at the same rate. An Up for Growth study found that between 2000 and 2015 Arizona underproduced 505,134 housing units. This underproduction has caused a housing shortage in Phoenix.

For example, in the last 30 years Phoenix produced approximately 220,000 new housing units, however, the population has grown by 820,000 people. Phoenix’s housing production has not kept pace with population growth. 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.

Highest Appreciating Phoenix Neighborhoods Since 2000 (List by Neighborhoodscout)

1. E Indian School Rd / N 50th Pl
2. N 14th St / E Fillmore St
3. N 40th St / E Glenrosa Ave
4. E Camelback Rd / N 56th St
5. Lariat Tra-Tel Trailer Court / Phoenix Seminary
6. E Camelback Rd / N 32nd Pl
7. W Glendale Ave / N 7th Ave
8. N 7th St / E Mckinley St
9. E Mcdowell Rd / N 14th St
10. Paradise View Mobile Home Park / Shady Ranch Trailer Lodge

The Growing Phoenix Rental Market

There is always going to be high tenant turnover in student housing markets. The presence of universities also influences local home prices and rents. 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 several 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.

Phoenix Rental Trends: 36% of the households in Phoenix are renter-occupied while 64% are owner-occupied. The rents are rising and it makes sense to keep your home and rent it out. In some neighborhoods, the average rental home may rent well over $2,500 a month.

As of June 30, 2021, the average rent for a 1-bedroom apartment in Phoenix, AZ is currently $1,100. This is an 8% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Phoenix increased by 4% to $975. The average rent for a 1-bedroom apartment increased by 2% to $1,100, and the average rent for a 2-bedroom apartment increased by 4% to $1,400.

• Two-bedroom apartment rents average $1,400 (a 10% increase from last year).
• Three-bedroom apartment rents average $2,075 (a 20% increase from last year).
• Four-bedroom apartment rents average $2,350 (a 12% increase from last year).

The “Zumper Phoenix Metro Area Report” analyzed active listings in May 2021 across 14 metro cities to show the most and least expensive cities and cities with the fastest-growing rents. The Arizona one-bedroom median rent was $1,116 last month. Scottsdale was the most expensive city with one-bedrooms priced at $1,600 while Lake Havasu City ranked as the most affordable city with one-bedrooms priced at $1,000.

The best place to buy rental property is about finding growing markets. Cities like Tempe and Glendale are good for investors looking to get started with rental property ownership at an affordable price. These trends provide a macro look at the growing rental demand. Each real estate market has its own unique supply-demand dynamics with unique neighborhoods that present their own opportunities for investors.

These cities look good for rental property investment this year as rents are growing over there.

The Fastest Growing Cities For Rents in Phoenix Metro Area (Y/Y%)

• Tempe had the fastest-growing rent, up 20% since this time last year.
• Glendale saw rent climb 15.7%, making it second.
• Surprise & Goodyear were tied for third with rents both jumping 15.2%.

The Fastest Growing Cities For Rents in Phoenix Metro Area (M/M%)

• Fountain Hills & Lake Havasu City rents had the largest monthly growth rate, both up 5.3%.
• Chandler rent increased 5.2% last month, making it the second fastest-growing.
• Glendale ranked third with rent growing 5.1%.

These are some of the most affordable neighborhoods where the rent prices are way below the average Phoenix rent.

• Garfield, where the average rent goes for $665/month.
• Papago Vista, where renters pay $690/mo on average.
• La Mancha, where the average rent goes for $695/mo.

Phoenix's Growing Short-Term Rentals

There are more than 200 golf courses in Arizona, but most are located in and around the Valley of the Sun. There are several 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. The Airbnb market has exploded in Arizona during the past five years. In late 2014, Phoenix only had 687 properties for rent listed on Airbnb. By March of 2019, that number had grown to 4,224 listed properties.

This makes Phoenix a great place to buy a single-family home or condo to rent out to tourists (as a short-term rental). However, there are some restrictions on short-term rentals. In May 2019, the state government passed a bill allowing for more regulations of short-term rental operators in the state of Arizona.

In the bill, municipalities were allowed to restrict rentals to overnight stays and prohibit events that otherwise would require a permit, like weddings. Under the new law, owners of short-term rentals should have a sales tax license and they must list the sales tax license number on any advertisements (online/offline) for the property.

Although, Phoenix’s short-term rental industry was hit hard by the COVID-19 pandemic the industry has shown resilience with relatively fair returns as owners implement safety measures to curb the spread of the virus and encourage guests to feel safe.

Phoenix 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.

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 a 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.

Growing Retiree Market

The same things attract many people to Phoenix as snowbirds cause 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. 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.

Low Taxes in Arizona

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.

The Major Wave of Renovation in Downtown Phoenix

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.

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.

Phoenix, Arizona Real Estate Investment Markets

Investing in Phoenix's real estate can be a worthy investment due to a steady rate of appreciation. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. The Phoenix housing market is one of the hottest markets for 2020. 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 above. Have a look at the Phoenix real estate investment prospects we have provided from various real estate sources and make the best possible decision for yourself. Good cash flow from Phoenix investment properties means the investment is, needless to say, profitable.

The three most important factors when buying real estate anywhere are location, location, and location. The location creates desirability. Desirability brings demand. There should be a natural and upcoming high demand for rental properties. Demand would raise the price of your Phoenix investment property and you should be able to get a good return on your investment over the long term.

The neighborhoods in Phoenix must be safe to live in and should have a low crime rate. The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Phoenix might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio.

Some of the popular neighborhoods for buying a house or an investment property in Phoenix are Vistancia, Laveen, Deer Valley, South Mountain, Biltmore, DC Ranch, Arcadia, McDowell Mountain Ranch, Anthem, North Scottsdale, Cave Creek, Old Town, Litchfield Park, Trilogy at Vistancia and North Phoenix.

Phoenix real estate prices are well above average cost compared to national prices. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplex and triplex in Class A neighborhoods. The inventory is low, but opportunities are there.

Even as Phoenix home prices have reached new heights, the market remains attractive to residential real estate investors. 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.

As with any real estate purchase, act wisely. Evaluate the specifics of the Phoenix housing market at the time you intend to purchase. These prices are from Realtor.com and can vary from time to time.

The super-hot housing market in Arizona has many other places for real estate investment. The Tucson real estate market is good for investment. Tucson like Phoenix sees a massive influx of snowbirds, retirees who flock here during the winter. That creates a large, seasonal rental market.

The need for many retirees to sell their second homes when they can no longer travel or live independently provides an opportunity to snap up properties at a bargain rate. Better yet, a large number of those properties don’t have a mortgage on them. Other snowbirds sell their condo and move into single-family homes when they decide to stay in Tucson year-round.

Similarly, Scottsdale has a track record of being one of the best long-term real estate investments in the nation if you are an investor. The area contains a mix of families, young professionals, and retirees. There are several reasons to consider investing in Scottsdale real estate. You’ll see better than average returns on the average Scottsdale real estate investment property, and its value will be bolstered by a variety of factors.

The Scottsdale housing market has a more diverse rental market than just catering to those who can’t afford to buy a single-family home. For example, the area is famous for its snowbirds, retirees who come for the winter before returning home. This makes Scottsdale a good place for real estate investing.

Chandler is bordered by the cities Tempe, Mesa, and Phoenix. It is home to about a quarter-million people. 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. This is in addition to a plethora of high-paying jobs that attract new residents and niche markets that are willing to pay higher rents in exchange for convenience and proximity to amenities.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Phoenix.

Consult with one of the investment counselors who can help build you a custom portfolio of Phoenix turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Phoenix.

Not just limited to Phoenix or Arizona but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Phoenix turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Let us know which real estate markets you consider best for real estate investing! 

Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

REFERENCES

• https://armls.com/
• https://armls.com/statistics
• https://armls.com/docs/ARMLS-Market-Watch-2021-Q1-1.pdf
• https://www.zillow.com/Phoenix-az/home-values
• https://www.zillow.com/research/zillow-hottest-markets-2021-28667/
• https://www.neighborhoodscout.com/az/phoenix/real-estate#description
• https://www.realtor.com/realestateandhomes-search/Phoenix_AZ/overview
• https://www.littlebighomes.com/real-estate-phoenix.html
• https://www.zumper.com/rent-research/phoenix-az
• https://www.phoenix.gov/housingsite/Documents/Final_Housing_Phx_Plan.pdf
• https://www.abc15.com/news/state/as-arizona-housing-prices-rise-wages-are-not-keeping-up
• https://metrorealtyphx.com/phoenix-real-estate-market-report-this-month
• https://arizonarealestatenotebook.com/phoenix-housing-market-predictions-2019
• https://www.mashvisor.com/blog/arizona-real-estate-market-2018-the-place-to-invest-this-year
• https://www.realtytrac.com/statsandtrends/az/maricopa-county/phoenix
• 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/
• http://www.friends.org/latest/accessory-dwelling-units-are-cities-and-counties-doing-enough
• https://www.phoenix.gov/sustainability/transportation
• https://www.phoenix.gov/sustainability/transportation
• https://www.curbed.com/2016/11/4/13518302/downtown-phoenix-real-estate-urban-planning-devleopment
• http://capstonecapitalusa.com/the-most-friendly-8-landlord-states
• https://www.rentcafe.com/blog/renting/states-best-worst-laws-renters
• https://universe.byu.edu/2017/02/22/this-tiny-arizona-desert-town-is-a-retirement-mecca-for-2-million-human-snowbirds/
• https://www.tripsavvy.com/what-is-a-snowbird-2683049
• 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
• 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
• https://news.azpm.org/p/news-articles/2017/6/8/111864-arizona-housing-back-on-pace-after-housing-meltdown
• https://www.azcentral.com/story/money/real-estate/catherine-reagor/2020/05/28/coronavirus-arizona-phoenix-housing-market-success-2020-pandemic-impact/5223134002/

Spokane has been one of the hottest real estate markets in the country for many years. Home prices in the Spokane real estate market are expected to rise at a steady pace in 2021. Spokane County's median home price continued to rise in June, reaching an all-time high of $385,000, an increase of 13.3% from a year ago. There is a high housing demand in the Spokane housing market and the current supply equals 12 days. Months Supply of Inventory is a calculation that quantifies the relationship between supply and demand in a housing market.

In Spokane, it would take 12 days for the current inventory of homes on the market to sell given the current sales pace. It shows that Spokane housing marketing is favoring sellers. The home sales in Spokane, WA in June 2021 were up by 5.2% compared to last year. In this article, we shall discuss some more important reasons why you may want to consider buying Spokane investment properties in 2021. Please note that many variables can potentially impact the value of a home in Spokane (or any other market) and some of these variables are impossible to predict in advance.

Spokane Housing Market Trends 2021 (Describes June)

Spokane is currently a hot seller’s real estate market – which means that the demand from buyers is exceeding the current supply of homes for sale. Historically low interest rates, tight inventory, and strong demand are continuing to favor sellers in the Spokane housing market. The pricing of homes is trending higher and is more attractive for sellers in the current phase. The shortage of supply and an increase in the demand for housing will push the prices higher.

According to Realtor.com, the Spokane housing market is a seller's market, which means there are roughly more buyers than there are active homes for sale. The median list price of homes in Spokane, WA was $350,000, trending up 20.7% year-over-year. The median listing price per square foot was $183. The median sale price was $360,000. Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%. The sellers in Spokane have managed to hold good leverage in these negotiations in the past month. On average, they could sell homes for 104.63% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher.

Below is the summary of the monthly housing report for June 2021, released by the Spokane Association of Realtors for single-family residential/site-built properties on less than one acre and condominiums. Inventory remains very tight leading to a surge in home prices. Demand is outpacing the supply.

• Spokane home sales were up 5.2% from a year ago.
• Closed sales of single-family homes on less than one acre including condos for June 2021 total 750 compared to June 2020 when the total was 713.
• The average closed price for June 2021 was $418,982 (+34.95) compared to June 2020 when the average price was $310,623.
• The median closed price for June 2021 was $380,000 (+28.8%) compared to June 2020 when the median price was $295,000.
• Inventory as of this report totals 284 properties which represents a 12 day supply.
• Compared to last year at this time inventory was at 728 properties.
• The current inventory is down 61% compared to last year.
• The number of new listings for June total 961, compared to June 2020 when there were 961 new listings.

Year To Date Home Sales Report Through June 2021

• Closed sales of single-family homes on less than one acre including condos through June 2021 total 3,598 compared to 3,340 through June 2020.
• This is an increase of 7.7%.
• The average closed price through June 2021 is $386,424 (28.4%) compared to $300,859 through June 2020.
• The median closed price through June 2021 is $352,000 (25.5%) compared to $280,456 through June 2020.
• Inventory as of this report totals 284 properties which represents a 12 day supply.
• Compared to last year when inventory was at 728 properties, inventory is down 61%.
• The number of new listings through June total 4,401 compared to the same period last year when there were 4,640 new listings.

According to the “Spokane Association of Realtors,” Net Closed Volume for June 2021 was $453,203,539. There were 1,715 listings processed, 1,153 closed sales. Compared to last month, Net Closed Volume is up $47,185,895. Listings are up 174, sales are up 98. Compared to last year, Net Closed Volume is up $137,883,901. Listings are up 59, sales are up 93. Mandatory sales volume was $429,057,739. Non-Mandatory sales volume was $24,145,800. Pending sales (figured on list price) were $541,118,981. There were 1,376 pending sales processed.

Spokane Real Estate Market Forecast 2021-2022

What are the Spokane real estate market predictions? Spokane housing market 2020 is shaping up to continue the trend of the last few years as one of the hottest markets in the nation. Let us look at the price trends recorded by Zillow (a real estate database company) over the past few years. Since 2012, the typical home value in Spokane has appreciated by around 130%. The Spokane house prices remained almost flat from 2012 to 2015. Spokane home values have gone up 26.3% over the past year alone. The typical value of homes in Spokane is currently $343,686.

It indicates that 50 percent of all housing stock in the area is worth more than $343,686 and 50 percent is worth less (adjusting for seasonal fluctuations). ZHVI represents the whole housing stock and not just the homes that list or sell in a given month. The supply is exceeding the demand, giving purchasers an advantage over sellers in price negotiations. In other words, there are more homes for sale than there are buyers in the marketplace. Spokane is a seller's real estate market.

• The typical home value of homes in Spokane-Spokane Valley Metro (99256) is $368,728. 
• Spokane-Spokane Valley Metro home values have gone up 25.3% over the past year and Zillow predicts they will rise 18.3% in the next year.
• Spokane County home values have gone up 26.0% over the past year and will continue to rise over the next twelve months.
• Spokane home values have gone up 26.3% over the past year and will continue to rise over the next twelve months.

Here is the Spokane, WA real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 18.3% until June 2022.

Spokane Real Estate Investment: Should You Invest in Spokane?

Now that you know where Spokane is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Should you consider Spokane real estate investment? Many real estate investors have asked themselves if buying an investment property in Spokane is a good investment? You need to drill deeper into local trends if you want to know what the market holds for real estate investors and buyers in 2021.

Let's talk a bit about Spokane before we discuss what lies ahead for investors and homebuyers. Spokane is the second-largest city in Washington State. It is sited on the Spokane River in the foothills of the Rocky Mountains. The population of Spokane is around two hundred thousand. However, the Spokane real estate market includes the broader metropolitan area that is home to nearly 600,000 people.

Spokane housing market has a mixture of owner-occupied and renter-occupied units. As per Neigborhoodscout.com, a real estate data provider, one and two-bedroom single-family detached homes are the most common housing units in Spokane. Other types of housing that are prevalent in Spokane include duplexes, rowhouses, and homes converted to apartments. Spokane single-family homes account for 65.75% of the city's housing units.

This real estate market of Spokane is sizzling hot though it is often overlooked for hotter markets like Seattle and San Francisco. Spokane homes are selling faster than Seattle homes. Inventor is very tight (would last only for 12 days at the current pace of sales). Why should one invest in this hot market in Washington? Well, to begin with, Spokane has a record of being one of the best long-term real estate investments in the U.S. over the past 10 years.

Like most cities in Washington State and nationwide, Spokane has experienced home price increases over the last couple of years. Looking at just the latest twelve months, Spokane appreciation rates continue to be some of the highest in the nation, at 11.72%, which is higher than appreciation rates in 96.19% of the cities and towns in the nation, according to Neighborhoodscout's data. Based on the last twelve months, short-term real estate investors have found good fortune in Spokane. Spokane appreciation rates in the latest quarter were at 2.44%, which equates to an annual appreciation rate of 10.10%.

Although this article alone is not a comprehensive source to make a final investment decision for Spokane, we have collected ten evidence-based positive things for investors who are keen to buy an investment property in Spokane. Let’s look at the state of the Spokane real estate market and the factors driving the market in the short and long term.

Spokane's Geography Limits Housing Supply

Geography up and down the West Coast limits the potential housing supply. We can’t build on water. The desire to preserve views and community limits how high vertically builders are allowed to build when they redevelop properties, while the mountains don’t provide a lot of places where you can build more than a basic bungalow. This explains why the Spokane real estate market along with Portland, San Francisco, and other Pacific coast cities are seeing rapid appreciation. In Spokane’s case, the riverfront is simply desirable but the mountains limit how far the city can expand. So, too, do the many national parks and wilderness areas near the city.

California’s Loss is Spokane’s Gain

In 2017, more than 130,000 people fled California to the surrounding states. Nor is this trend going to slow down, given that half of the adults say they are considering leaving the state. Housing costs and availability were two of the most commonly cited reasons, though security, crime, taxes, and jobs were also factors. And while Californians moving to Texas makes the headlines, in reality, most stay closer to home. In 2016 alone, more than 50,000 Californians moved to Washington. Furthermore, urban dwellers tend to move from city to city, moving from downtown San Francisco to the Spokane real estate market, where they can afford to buy homes.

Spokane isn’t like Oregon

We can talk about the number of people fleeing the oppressive regulations and high tax rates of California driving up real estate prices across the West Coast and the Rocky Mountains. However, not all states are equally attractive. We’re recommending investing in Spokane rental properties instead of hot markets like Portland, Oregon because of Oregon’s recent legislation. For example, they became the first state to implement statewide rent control. State law to limit how fast rents can rise is intended to help renters, but it creates cash flow for landlords that inevitably leave them unable to maintain properties.

Long term, these rules hurt renters, too, because an inability to recoup the cost of construction and maintenance prevents new housing stock from being built. Given how well economists understand that rent control hurts housing quality and affordability by limiting new construction except for luxury units that are exempt from rent control rules, we’re sure future laws that undermine the profitability of real estate in Oregon will go into effect soon. Invest in the safer, saner Spokane real estate market instead.

Spokane Housing Costs Remains Cheap Compared to Other West Coast Cities

Silicon Valley made the news when the cost of the average home there passed the million-dollar mark. The median home price in California passed half a million in 2017, and while home sales in California have slowed, demand has not. Yet Spokane remains relatively affordable. You could buy two Spokane rental properties for the price of one property in California, and if you hunt for a bargain or choose smaller starter homes, you could buy several rental properties in the Spokane housing market for the price of one property in a hot California market. The fact that living in Spokane is cheaper than the U.S. average is only another reason for people to move here.

Spokane Beats Seattle, Too

Seattle is larger than Spokane, but the Spokane real estate market is hotter because the area is cheaper than Seattle. Millennials, in particular, are flocking to the Spokane housing market because rents are half that of Seattle, while home prices are a third that of Seattle. Note that if a one-bedroom apartment in the Seattle market costs around $1000, you could charge $2000 or more for Spokane rental properties with enough space for a growing family. Seattle may be making its own tax mistakes from the soda tax to its fight to pass a city income tax. This makes buying in more sedate Spokane a wise choice.

Spokane Has Low Tax Rates for a West Coast City

California is one of the highest taxed states, taking 11% of one’s income. That’s somewhat more than the 9.3% peak rate Washington State takes. That’s also lower than Oregon’s 10.3% income tax rate. Another point in favor of Washington State is its lower average property tax rate. The average property tax rate for Washington properties is around 1.1% of the assessed value, close to the national average of 1.2%. The benefit of the Spokane real estate market is the significantly lower property values compared to Seattle that results in a far lower property tax bill.

Spokane's Strong Rental Market

Washington State doesn’t put a limit on security deposits, though it has strict deadlines by which landlords must refund the money. Landlords can raise the rent if they provide at least thirty days' rent. Tenants have three days to pay the rent before an eviction can proceed. Washington State allows tenants to be evicted for any cause, though the Tenants Union wants to prohibit evictions unless there is an acceptable reason to be evicted such as the property is being sold.

Washington state law says that tenants can withhold rent if important repairs are not completed, and they can repair serious issues and deduct it from their rent. This is an area where Spokane beats Seattle, too. Seattle requires 90 days’ notice to evict someone without cause, while Spokane has no such regulations.

The student market consisting of 18 separate universities does pump a lot of renters into the Spokane housing market, but it isn’t a huge market segment in and of itself. However, the impact of the Washington State University campus in Spokane is massive. The Spokane housing market is certainly impacted by the relocation of the College of Pharmacy to the local campus, the new Health Sciences Campus, and tens of millions of dollars of new educational facilities.

The biomedical research facilities should add to the number of high-paying research and educational jobs in the area. A side benefit of the large campus and the associated jobs is that it makes the Spokane area’s population much younger than average, guaranteeing demographic momentum as people remain here for work and choose to buy homes for their growing families.

The City Is Poised to Take Off

One reason why Spokane long lagged behind Seattle was its higher unemployment rate. Seattle has a roughly 3% unemployment rate, significantly lower than the 5% unemployment rate seen in Spokane. Spokane’s economy, though, is seeing a surge of higher-wage jobs. Out of the tens of thousands of new jobs created since 2010, the majority of them pay more than the average county wage – which is in line with the national average. The promise of better pay will lure many people to Spokane to live, fueling demand for the Spokane housing market.

Conclusion

Spokane is a relatively cheap real estate market on the West Coast. It is already seeing increased demand and property valuations, while it remains a safe place to invest in real estate. Skip Seattle and Silicon Valley and invest in the future growth of Spokane. Good cash flow from Spokane investment properties means the investment is, needless to say, profitable. On the other hand, a bad cash flow means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Spokane in a growing neighborhood would be key to your success.

Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Spokane.

Consult with one of the investment counselors who can help build you a custom portfolio of Spokane turnkey investment properties in some of the best neighborhoods. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Spokane turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.

Apart from the Spokane real estate market, you can also invest in another hot market like Seattle. Seattle’s tech landscape and real estate market are rapidly evolving. Google just upped the size of its new Seattle campus. Facebook has been on a hiring spree in the Seattle area, particularly for its virtual reality arm Oculus, which is growing fast in Microsoft’s backyard of Redmond. GeekWire reported on new HQ leases for top Seattle startups Rover and Outreach. Other companies continue to grow and that will pick up any slack. Tech has blown up Seattle. For the past 5 years, we have seen 50% price growth in this market which has priced out many middle-class buyers.

Another city in Washington where you can invest is called Tacoma. Tacoma sits at the southern end of Puget Sound and straddles Commencement Bay. Being a large port town, it is already flanked by smaller cities and backed by mountains. This prevents the city from simply expanding outward, forcing developers to pay for the more expensive redevelopment of existing properties. This will keep prices in the Tacoma real estate market high as long as the job market remains strong. It certainly limits the ability to quickly bring new supply to a tight housing market that has only 1.5 months of inventory on hand.

The third real estate market which is good for investment is Walla Walla. The Walla Walla real estate market is much more stable than coastal real estate. Property prices have appreciated about six percent in the past ten years. This is slow, steady growth. It is far better than the depreciation you see in some rural areas. It doesn’t provide the excitement of Seattle and San Francisco property prices rising by double digits, but you also don’t see housing prices crash because a tech giant decides they want to leave the area, citing insane real estate prices.

Let us know which real estate markets you consider best for real estate investing in 2020!

Remember, caveat emptor still applies when buying a property anywhere. Some of the information contained in this article was pulled from third-party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.

References:

• Spokane demographics
  https://en.wikipedia.org/wiki/Spokane,_Washington
• Latest Market Data, Trends, and Statistics
  https://www.spokanerealtor.com/market-snapshot
  https://www.spokanerealtor.com/mls-weekly-news-information
  https://www.zillow.com/Spokane-wa/home-values
  https://www.littlebighomes.com/real-estate-spokane.html
  https://www.neighborhoodscout.com/wa/spokane/real-estate
  https://www.movoto.com/spokane-wa/market-trends
  https://www.realtor.com/realestateandhomes-search/Spokane_WA/overview
  https://www.sammamishmortgage.com/spokane-the-other-hot-market
• Foreclosures
  https://www.realtytrac.com/statsandtrends/wa/spokane-county/spokane/
• WSU impact
  https://advantagespokane.com/workforce
• Taxes
  http://mynorthwest.com/905380/washington-taxes-ranking
• Oregon / rent control
  https://www.heraldtribune.com/news/20190304/oregon-becomes-first-state-to-impose-statewide-rent-control
  https://www.brookings.edu/research/what-does-economic-evidence-tell-us-about-the-effects-of-rent-control
• California’s loss
  http://www.ktvu.com/news/ktvu-local-news/california-exodus-study-says-more-people-leaving-state-than-moving-here
  https://www.cnbc.com/2019/02/12/growing-number-of-californians-considering-moving-from-state-survey.html
  https://www.tsishipping.com/blog/moving/top-10-places-californians-now-call-home-2018
• Restricted density/building height
  http://www.spokesman.com/stories/2017/mar/12/spokane-leaders-look-to-lift-restrictions-on-build
• Spokane is relatively cheap
  https://www.prnewswire.com/news-releases/california-home-sales-close-year-on-downward-trend-as-home-prices-post-mild-gains-car-reports-300780469.html
• It beats Seattle
  http://mynorthwest.com/905380/washington-taxes-ranking
  https://www.krem.com/article/news/local/spokane-county/why-live-in-spokane-over-seattle-its-way-cheaper/293-561489776
• Relatively landlord-friendly
  https://www.nolo.com/legal-encyclopedia/overview-landlord-tenant-laws-washington.html
  https://www.krem.com/article/news/local/spokane-county/tenants-union-landlord-association-look-at-regulations-on-rent-increase/293-605044268
• High wage jobs
  http://www.spokesman.com/stories/2017/feb/13/spokane-area-economy-is-creating-higher-wage-jobs
• High appreciation
  https://www.krem.com/article/news/local/spokane-county/spokane-co-home-values-increase-dramatically-for-2019/293-587065966
  https://www.krem.com/article/news/investigations/2-on-your-side/spokanes-housing-market-hotter-than-seattles-for-first-time-in-six-years/293-eaa7b3d2-3281-410d-95b8-26c07f8e54c4