If you are considering buying a house or an investment property in the Phoenix real estate market, you’ll find all the housing statistics on this page to help you make a sound decision. 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. We’ve been seeing real estate appreciation rates increasing year-over-year in the entire metro area. The Greater Phoenix area was also predicted to be among the top housing markets in the year 2020.
Phoenix housing market 2020 started so strong 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 asking price of property owners. In January, many experts expected moderate growth and moderate price appreciation in 2020. In March, the Metro Phoenix’s median home price hit a record of $302,500. The median sales price in Maricopa County for Q1-2020 was $309,990, up by + 12.7% from last year. Even in the times of the Covid-19 pandemic, the sales prices in the Phoenix housing market are not declining.
In March and April, there was a year-over-year increase of 13.2% and 11.1% respectively in the reported median prices. In short, Phoenix remains a sizzling hot seller’s real estate market in the current cycle. However, it is taking longer for sellers to sell their homes under these conditions. The good thing for buyers in the housing market of Phoenix is that while supply remains at historically low levels, the price growth rate has slowed down a bit. Also, as some investors are pulling out of the marketplace, the regular homebuyers are getting in a better position to scoop up properties left by them. That’s because homebuyers don’t have to enter into a bidding war with real estate investors. For sellers, this is the best time to sell for a profit as housing inventory is reported to be at an 8-year low.
The latest “PHOENIX HOUSING MARKET REPORT” is given below. Home prices are steady despite a drop in sales due to coronavirus pandemic.
Let’s talk a bit about Phoenix the surrounding metro area before we discuss what lies ahead for investors and homebuyers. 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 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. 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.
What Makes Phoenix A Hot Place For Real Estate Investment?
Let’s continue to explore the Phoenix housing market to understand what it will look like in 2020. We shall also discuss some important reasons why you may want to consider buying Phoenix investment properties in 2020. You will get a fair amount of knowledge of the fundamentals of this hot real estate market.
Please note that real estate prices are deeply cyclical because its demand side is impacted by economic cycles. Much of it is dependent on factors you can’t control. The recent example is COVID-19 which has badly impacted our economy. Therefore, many variables can potentially impact the value of the real estate in Phoenix in 2020 (or any other market) and some of these variables are impossible to predict in advance.
Phoenix Housing Market Trends & News 2020
We shall now discuss some of the most recent Phoenix real estate trends & news, and compare it with the past couple of years. We shall mainly discuss median home prices, inventory, economy, growth, and neighborhoods, which will help you understand the way the local real estate market moves in this region. Phoenix is also one of the hottest real estate markets in the nation. In the past ten years, the annual real estate appreciation rate has amounted to 7.46%, according to NeighborhoodScout.com. This puts Phoenix in the top 10% nationally for real estate appreciation.
Phoenix is a minimally walkable city in Maricopa County with a population of approximately 1,442,530 people. Below is the latest monthly report of the Phoenix Metro Area Housing Market. 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. The report compares key housing metrics of the entire Phoenix metro area from April 2020 with April 2019.
- Sales are down -19.7% month-over-month. The year-over-year comparison is down -27.1%.
- New inventory is down -19.7% month-over-month while the year-over-year comparison decreased by -18.7%.
- Total inventory has a month-over-month decrease of -1.4% while year-over-year reflects a decrease of -22.2%.
- Months supply of inventory for March was 2.11 with April at 2.59.
- Average new list prices are up +0.4% year-over-year. The year-over-year median is up +5.1%.
- The average sales price is up +8.6% year-over-year while the year-over-year median sales price is also up +11.1%.
- Days on market were down -18 days year-over-year while month-over-month were down -6 days.
On Movoto.com, Phoenix city’s current home resale inventory number is 2,049, which has decreased by 40 percent from a year ago. Compared to last month (April) the inventory has decreased by 4%. The median list price per square foot in Phoenix is $204. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in June.
|Phoenix Housing Statistics||Current||1 Month Ago||1 Year Ago|
|Median List Price||$376,500||$375,000||$360,000+4%|
|Median Days on Movoto||61||59+3%||49+24%|
|Median Home Size||1,869||1,866||1,928-3%|
Data Courtesy of Movoto.com
Impact of COVID-19 on Phoenix Housing Market
The question now is what happens moving forward. 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 is expected that social distancing, higher unemployment, and lower overall economic activity is likely to continue to constrain real estate activity in the near term. 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 will not be that extreme. As Arizona economy opens back up slowly and cautiously, according to ARMLS, a decrease in the average and median sales prices are forecasted in May. The shutdown has already resulted in 546,900 unemployment filings. The biggest mistake buyers make is sitting around waiting for sale prices to decline while their potential mortgage payment plummets. Mortgage rates have declined to an average of 3.26%. Last year at this time mortgage rates were 4.1%.
This is the time for buyers to take advantage before they are increased again. The only con is that lenders are requiring higher credit scores because of looming economic uncertainty. As more sellers are offering concessions, there isn’t going to be a big decline in home prices in the Phoenix housing market. If job losses get even worse, then it could affect the demand going into the second half of 2020. The buyers won’t be able to buy what they want to, and properties will remain on the market for very long, which is not great for sellers.
Phoenix Real Estate Market Forecast 2020 – 2021
What are the Phoenix real estate market predictions for 2020? Let us look at the price trends recorded by Zillow over the past few years. Since 2015, the median home price in Phoenix has appreciated by roughly 49% from $180,000 to $269,175. The prices have risen by a massive 8% over the 12 months alone. Last year saw was the eighth consecutive year of home price gains.
The Zillow Buyer-Seller Index (BSI) considers Phoenix a sizzling hot seller’s real estate market. This is computed monthly. According to their index, there exists a limited supply of homes in Phoenix, and buyers are forced to compete often resulting in higher prices and/or quicker sales that tend to benefit sellers. In other words, based on the last month’s key housing market indicators, the demand is exceeding the supply, giving sellers an advantage over buyers in price negotiations. There are fewer homes for sale than there are active buyers in the marketplace.
The latest Phoenix real estate market forecast (by Zillow) is that the home prices may remain flat or decrease by a mere 0.3% – in the next twelve months. This could be due to the short term impact of the ongoing pandemic which has impeded the real estate sales activity in the entire country.
OUR TAKE: We have already discussed above the latest housing market report for the Phoenix area. It shows no sign of cooling off, surprisingly so. The entire The 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.
As May ends and the economy opens up slowly, the pending home sales in the Phoenix area are climbing again, which indicates that the housing market slowdown this summer would be much less than previously expected. Earlier, housing experts had forecasted that home sales could slow by as much as 80% during this summer. It’s still a seller’s real estate market in Phoenix, but there are fewer bidding wars on the most affordable homes (less than $500,000) on the market.
If demand decreases in the region, then I think it would be more like a balanced real estate market – at least for the remainder of the year 2020 until the pandemic is over. This shift would be a boon for the Phoenix home buyers, even though temporary, as we saw a huge appreciation in 2019. Prices would remain more or less flat.
The Phoenix and the entire metro area market is so hot that it cannot shift to a complete buyer’s real estate market, for the long term. 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. Therefore, in the long term, the Phoenix real estate market remains strong and skewed to sellers, due to persistent imbalance in supply and demand.
Here is a short and crisp Phoenix housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Phoenix is 74% and it is predicting a positive trend. LittleBigHomes.com estimates that the probability of rising home prices in Phoenix is 74% during this period. If this price forecast is correct, the Phoenix home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Here is the visual representation of historical Phoenix home prices and the latest forecast until March 2021.
Phoenix Real Estate Market: Phoenix, AZ Homes For Sale
Single-family homes continue to drive the Arizona real estate market. As compared to 2018, single-family homes grew by roughly 4% in 2019. 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.
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. At the national level, the 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. With 2020 being, theoretically, in the middle of a boom, there are still 4 years for residential construction to surge. Most likely, a housing shortage will remain in 2020, keeping home prices high.
Currently, there are 3239 single family homes for sale in Phoenix, AZ on Zillow. Additionally, there are 598 single family homes for rent in Phoenix, AZ. Under potential listings, there are about 5 Foreclosed and 466 Pre-Foreclosure homes. These are the delinquent properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
- The median list price per square foot in Phoenix is $176, which is higher than the Phoenix-Mesa-Scottsdale Metro average of $169.
- The median price of active homes for sale in Phoenix is $289,900.
- The median price of homes sold in March was $254,700.
- The median rent price in Phoenix is $1,475, which is lower than the Phoenix-Mesa-Scottsdale Metro median of $1,545.
There are currently 6398 homes for sale and 2095 homes for rent in Phoenix, AZ on Realtor.com, a real estate listings website. It can include open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process. According to their data, in April 2020, Phoenix was a seller’s real estate market, which means there were roughly more buyers than there were active homes for sale. The demand for housing outpaced the supply.
It also means that the market is very competitive for buyers. Typically, a market that favors sellers has less than 6 months of supply, while more than 6 months of supply indicates an excess of homes for sale that favors buyers. As per the current trends, the Phoenix is all set to remain a seller’s market in the next 12 months. The median list price of homes in Phoenix, AZ was $320K in April 2020, trending down -5.6% year-over-year.
The median listing price per square foot was $188. The median sale price was $295,000. Ideally, a buyer would prefer a sale to asking price ratio that’s closer to 90%. The sellers in Phoenix have managed to hold good leverage in these negotiations in the past month. On average, they could sell homes for 100% of the asking price. A seller would always prefer scenarios that can yield a ratio of 100% or higher.
Phoenix Housing Market: Foreclosure Statistics In 2020
Here are some foreclosure statistics of the Phoenix real estate market. As per the Phoenix foreclosure data by 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%. The percent of Phoenix homeowners underwater on their mortgage is 7.4%, which is higher than the Phoenix-Mesa-Scottsdale Metro at 7.1%.
The distressed seller’s market is becoming a non-factor in this region. In April 2020, foreclosures pending month-over-month showed a decrease of -8.8% while the year-over-year figure was down -22.4%. Distressed sales accounted for 0.7% of total sales, up from the previous month of 0.5%. Short sales dropped -57.9% year-over-year. Lender-owned sales decreased by -35.5% year-over-year.
There are currently 663 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 2,847. In April, the number of properties that received a foreclosure filing in Phoenix, AZ was 51% lower than the previous month and 45% lower than the same time last year.
|Potential Foreclosures in Phoenix||663 (RealtyTrac)|
|Homes for Sale in Phoenix||2847|
|Median List Price||$305,000 (2% rise vs Mar 2019)|
In Phoenix, the zip code with the highest foreclosure rate is 85043, where 1 in every 1456 housing units is foreclosed. 85041 zip code has the lowest foreclosure rate, where 1 in every 3051 housing units become delinquent.
Here is the graph showing the number of new foreclosure filings in Phoenix by the foreclosure type.
Phoenix Real Estate Market: Is It A Good Place For Investment?
Now that you know where Phoenix 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 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 the 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.
1. 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.
2. The Dozen Other Development Opportunities in Phoenix
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. Phoenix Large Student Market That Rents
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.
4. 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. 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.
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 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.
6. Phoenix Growing Retiree Market
The same things that 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.
7. Phoenix 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. 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.
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 strong demand for one and two-bedroom houses and condos here, and those units are a fraction of the cost of a three-bedroom home.
10. Value-Added Enhancements Are Frequently an Option
Suppose you buy a house to renovate and rent out. Phoenix deals with a large retiree population, both permanent and seasonal. To accommodate aging in place, they’ve loosened the rules on building “accessory dwelling units”, commonly known as mother-in-law suites. The city also recognizes the need for affordable housing, and they allow people to build and rent out ADUs as affordable housing, especially if the property is within walking distance of public transit. Buy a house, rehab it, and build a granny flat, and you have two rental properties for not much more than the price of one. And the city is almost certain to approve it because they want denser development.
Investing in 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.
A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding a good Phoenix real estate investment opportunity would be key to your success. If you invest wisely in the Phoenix real estate, you could secure your future. The best investment is now looking for a rental property that will generate good cash flow. Your best tenants would be the retirees who intend to relocate to the Phoenix and want to purchase property to rent out. The running costs for owning and managing a Phoenix rental property should not be high. While hiring a property management company you should expect to give up roughly ten percent of the rent for each property they manage. Remember to factor this loss into your calculations when budgeting for a new rental property.
The three most important factors when buying a 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.
Here is a snapshot that shows the median home values in some of the popular neighborhoods of Phoenix.
The asking price of single-family homes in Phoenix can start from $130,000 and can go up to $9.9M for a luxury property located in the Arcadia neighborhood. Camelback East has a median listing price of $489.9K, making it the most expensive neighborhood in Phoenix. Maryvale is the most affordable neighborhood, with a median listing price of $214,900. You can find affordable new construction homes located in the North Phoenix neighborhood. North Phoenix neighborhood has a low crime risk and a median price of $351,000.
As with any real estate purchase, act wisely. Evaluate the specifics of the Phoenix housing market at the time you intend to purchase. Hiring a local property management company can help in finding tenants for your investment property in Phoenix. If it is your first time to invest in Phoenix real estate, then you would have to be aware of common beginner’s mistakes. Beginners would usually follow the media, buy a property, and wait for its value to increase. This could be risky. Real estate investing requires research. We recommend doing your research or hiring a real estate investment specialist for guidance.
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.
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.
Is It The Right Time To Invest In Real Estate? – The national homeownership rate is on the decline for the first time since 2017. As demographics change and baby boomers retire, you’re seeing Millennials who may not be ready to buy houses. In 2018, Millennials made up about 22 percent of the population in the United States. They’re choosing to rent over buying a single-family home or an apartment. Rising home prices and shortage of starter homes have not left Millennials many choices but to delay homeownership. Moreover, it’s even harder to take out a mortgage for those who have student loan debt.
Phoenix | Arizona Real Estate Investment Opportunities
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 a single-family home when they decide to stay in Tucson year-round.
Similarly, if you are an investor, Scottsdale has a track record of being one of the best long term real estate investments in the nation. The area contains a mix of families, young professionals, and retirees. There are several reasons to consider investing in the 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.
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, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US.
Latest Market Data, Trends, and Statistics
Full-time snowbird/Permanent retirees