How is The Phoenix Real Estate Market 2019?
If you are looking at investing in the Phoenix real estate as a potential investment opportunity, you must read till the end. 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.
The national economy is super strong and the number of people moving into Phoenix is finally strong again after tanking during the Great Recession. If you are an investor, Phoenix real estate has a track record of being one of the best long term investments in the nation. Based on the last twelve months, short-term real estate investors in Phoenix have found good returns on their investments. Phoenix real estate appreciation rates in the latest quarter were at 1.36%, which equates to an annual appreciation rate of 5.56%.
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.
There are a number of other reasons to consider investing in the Phoenix real estate. Is Phoenix going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Phoenix housing market trends and find out the prospects of investing in Phoenix real estate in 2019.
Phoenix Real Estate Market Forecasts 2019 & 2020
As per real estate company named Zillow, the median home value in Phoenix is $242,800. Phoenix home values have gone up 5.5% over the past year and their Phoenix real estate market prediction is that the prices will rise 2.6% by May 2020. The median list price per square foot in Phoenix is $175, which is higher than the Phoenix-Mesa-Scottsdale Metro average of $163.
The median price of homes currently listed in Phoenix is $285,000 while the median price of homes that sold is $229,200. The median rent price in Phoenix is $1,495, which is lower than the Phoenix-Mesa-Scottsdale Metro median of $1,595.
According to LittleBigHomes.com, the Phoenix real estate market forecast for the 12 months ending with the 3rd Quarter of 2019 is positive. Their accuracy of the Phoenix real estate market trend prediction is 85%. Accordingly, they estimate that the probability for rising home prices in Phoenix, AZ is 85% during this period. If this Housing Market Forecast is correct, home prices will be higher in the 3rd Quarter of 2019 than they were in the 3rd Quarter of 2018.
Phoenix Housing Market Forecast 2019 – 2021
The Phoenix housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Phoenix housing market trend prediction is 74%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Phoenix, Arizona is 74% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Phoenix, Arizona Real Estate Forecast.
Phoenix Real Estate Market Trends
Let us find out how is Phoenix real estate market doing in 2019. Phoenix real estate market trends indicate an increase of $4,900 (2%) in median home sales and a 3% rise in median rent per month over the past year. The average price per square foot for this same period rose to $170, up from $162. Trulia has 6,820 resale and new homes for sale in Phoenix, AZ, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Phoenix for Mar 20 to Jun 19 was $249,900 based on 6,236 home sales. Average price per square foot for Phoenix was $170, an increase of 5% compared to the same period last year. The median rent per month for apartments in Phoenix for May 24 to Jun 24 was $1,595.
Data by Redfin shows that the Phoenix housing market is very competitive. Homes in Phoenix receive 1 offers on average and sell in around 44 days. The average sale price of a home in Phoenix was $264K last month, up 2.7% since last year. The average sale price per square foot in Phoenix is $166, up 4.4% since last year. Homes typically receive 1 offer. Homes for sale in the Phoenix housing market sell for about 2% below list price and go pending in around 44 days. Hot homes for sale in Phoenix can sell for around list price and go pending in around 20 days.
Phoenix Housing Market Statistics
|Median Sales Price||$249,900 (On Trulia)|
|Price Per Square Ft||$170|
|Median Rent Per Month||$1,595|
|Median Household Income||$43,150|
|Transportation||94% people commute by car, public transport available|
There are 6,605 homes for sale in Phoenix, ranging from $10.5K to $10.3M on Realtor.com. 484 of which were newly listed within the last week. Additionally, there are 1,726 Phoenix rental properties up to $15,000 per month. In May 2019 the housing market in Phoenix, AZ was a buyer’s market, which means there were roughly more active homes for sale than there were buyers. Homes in Phoenix sell faster than average compared to other cities in Maricopa County.
In May 2019, the median list price of homes in Phoenix, AZ was $282.9K, trending up 2.9% year-over-year. The median listing price per square foot was $171. The median sale price was $224.9K. Homes in Phoenix, AZ sold for 6.3% below asking price on average in May 2019. On average, homes in Phoenix, AZ sell after 44 days on the market. The trend for median days on market in Phoenix, AZ is flat since last month, and flat since last year.
The median list price in Phoenix, AZ is 365,000 on Movoto.com. The median list price in Phoenix went up 1% from May to June. Phoenix’s home resale inventories is 3,348, which decreased 2 percent since May 2019. The median list price per square foot in Phoenix is $188. May 2019 was $188. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in June.
Phoenix, AZ Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate. Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Phoenix, AZ is $229,020, which indicates that home prices in Phoenix are well above the national average for all cities and towns. Single family detached homes are the single most common housing type in Phoenix, accounting for 61.22% of the city’s housing units.
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.
Other types of housing that are prevalent in Phoenix include large apartment complexes or high rise apartments ( 25.02%), duplexes, homes converted to apartments or other small apartment buildings ( 6.26%), and a few row houses and other attached homes ( 4.21%).
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 52.85% owning and 47.15% renting.
Currently, there are 4,605 single family homes for sale in Phoenix, AZ on Zillow. Additionally, there are 1,001 single family homes for rent in Phoenix, AZ. Under potential listings, there are about 9 Foreclosed and 836 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Phoenix, AZ Foreclosures And Bank Owned Homes 2019
According to Zillow, in Phoenix 0.4 homes are foreclosed (per 10,000). This is lower than the Phoenix-Mesa-Scottsdale Metro value of 0.5 and also lower than the national value of 1.2. 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%.
|Foreclosures in Phoenix||1,008|
|Homes for Sale||3,855 (RealtyTrac)|
|Median List Price||$280,000 (0% ⇑ vs Apr 2018)|
There are currently 1,008 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 3,855. In May 2019, the number of properties that received a foreclosure filing in Phoenix, AZ was 9% lower than the previous month and 27% lower than the same time last year.
Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Phoenix was $0. The median sales price of a foreclosure home in Phoenix was $0, or 0% higher than non-distressed home sales.
Phoenix Home Prices And Real Estate Appreciation 2019
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.
Current trends fairly predict that the Phoenix home prices and real estate 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. According to Neigborhoodscout.com, the Phoenix real estate appreciated 37.09% over the last decade, which is an average annual home appreciation rate of 3.21%, putting Phoenix in the top 20% nationally for real estate appreciation.
Phoenix real estate appreciation rates are so strong that despite a nationwide downturn in the housing market, Phoenix real estate has continued to appreciate in value faster than most of the markets.
In the latest twelve months, Phoenix real estate appreciation rates continue to be some of the highest in the nation, at 8.42%, which is higher than appreciation rates in 84.55% of the cities and towns in the nation.
Best Places To Buy Real Estate In Phoenix, AZ
Phoenix has been one of the highest appreciating communities not only in Arizona but in the nation as well for the latest quarter of 2019. If you are looking to buy real estate in Phoenix, you should know the best places to invest in. There are 750 schools in Phoenix, AZ.
There are 292 elementary schools, 217 middle schools, 150 high schools and 91 private & charter schools. There are 35 neighborhoods in Phoenix. Some of the best neighborhoods in Phoenix, Arizona are Paradise Valley Village, Camelback East and Deer Valley.
Desert View has a median listing price of $449,000, making it the most expensive neighborhood. Central City South is the most affordable neighborhood, with a median listing price of $183,000.
Here are the 10 best neighborhoods in Phoenix to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Paradise View Mobile Home Park / Shady Ranch Trailer Lodge
Bronze Boot / Thomas Trailer Court
E Camelback Rd / N 56th St
Singing Spur Mobile Park
E Indian School Rd / N 50th Pl
N 20th St / E Turney Ave
E Camelback Rd / N 32nd Pl
N 14th St / E Fillmore St
W Happy Valley Rd / N 49th Ave
E Mcdowell Rd / N 14th St
Is Phoenix a Good Place to Invest in Real Estate?
Is it worth buying a house in Phoenix, AZ? Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Phoenix is good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Phoenix housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Phoenix, but we have collected ten evidence based positive things for those who are keen to invest in the Phoenix real estate in 2019.
Investing in Phoenix real estate will fetch you good returns in the long term as the home prices in Phoenix have been trending up 2.9% year-over-year. 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.
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.
Phoenix Real Estate Investment
Maybe you have done a bit of real estate investing in Phoenix, AZ but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. If you are a home buyer or real estate investor, Phoenix real estate investment definitely has a track record of generating one of the best long term returns in the U.S. through the last ten years. If you invest wisely in Phoenix real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
Most investors naturally gravitate to residential property investment. When looking for the best real estate investments, you should focus on markets with relatively high population and employment growth. Both of them translate into high demand for housing. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Phoenix, Arizona. 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. 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.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Phoenix, AZ is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Phoenix real estate in 2019. However, we always recommend to do your own research and take help of a local real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
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 2019. 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.
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 2019 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.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. 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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Granny flats / ADUs
15 redevelopment sites
State of Phoenix
Full time snowbird / permanent retirees
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