As the economy goes, so goes the real estate market. The Phoenix, AZ real estate market is projected to be the top in the country in 2017. Local economies are doing well, housing prices have recovered and, as written previously, there are plenty of signs that the good times will continue into 2017. It seems that the rest of the country is finally figuring out what Phoenix residents have known all along … the Valley of the Sun is an incredible place to live AND incredibly affordable.
So, how will this impact Phoenix, AZ real estate market?
Key expansions in industries like finance, healthcare, and the construction sector are all contributing to the previously-predicted success of the Arizona economy and Phoenix’s outpacing of the rest of the nation in terms of economic growth. The heavy concentration in the construction industry may impact the speed of economic growth as the incoming presidential administration decides how best to confront immigration, but overall, there is a real diversification of the economy which means that the Phoenix, AZ real estate market will be less susceptible to the violent swings and boom-and-bust patterns of previous decades.
Phoenix, AZ Real Estate Market
Furthermore, as a record number of Baby Boomers begin to retire (approximately 24 million boomers are currently 65 and older and that number will more than double over the next seven years), Phoenix will inevitably see more growth in the real estate market as they choose to take advantage of the Valley of the Sun’s sunny climate and world-class amenities.
Anticipate residential real estate prices to increase 5.9 percent (as opposed to 3.9 percent nationally) and sales to grow 7.2 percent.
Is it a Buyer’s or Seller’s Market?
The truth is, it is both. Because most of the housing market has recovered to pre-recession levels, homeowners who may have been stuck in their existing homes now have the ability to makes moves and sell their real estate, confident in the knowledge their renewed equity. In turn, the market is not artificially high as was the case in the past when we suffered from housing bubbles; available inventory is relatively balanced. Longtime Phoenix residents who remember the days of the real estate market being on fire may not feel like we are doing too well, but the truth is, the market has simply corrected itself. And rather than overly-enthusiastic investment speculators, we are seeing the inventory being met with a lot of demand from people relocating for jobs and the Baby Boomers, as mentioned above.
Additionally, permits for single-family homes are up, which means that new developments are offering competition to existing home sales and helping to keep prices in check in the face of increased demand (especially in the market for affordable houses in the $200,000 range and in West Valley areas like Peoria).
Overall, buyers would benefit to make their purchases sooner than later (before that 5.9 percent price increase starts kicking in over the course of the year) and sellers should feel comfortable taking their time although there are profits to be made now if the time is right, their current investment is secure should there be anything keeping them from pulling the trigger immediately. Individuals on either side of a Phoenix, AZ real estate transaction have a real opportunity to make a good, honest deal that benefits both parties.
Phoenix, AZ Real Estate
Phoenix property currently has a median price of $155 per square foot. Traditionally, homes in Phoenix are smaller than their counterparts in suburbs like Glendale and Surprise—largely a factor of the relative density of multiple family properties and historic homes in Phoenix. However, when looking at North Phoenix homes for sale, there is an abundance of larger homes that can deliver all of the immediate comforts of the McMansions popping up on the outskirts of the metro area. Alternatively, there is also a bevy of older (1060s-1980s) ranch style homes that are more modestly sized—you can find one that has either already been professionally updated, or take the opportunity to fix up one to your exact preferences … all while allowing homeowners to have that coveted Phoenix address and unmatched access to the central corridor. North Phoenix homes for sale are also a smart bet for people considering purchasing small rental properties.
In addition to the possibilities granted by North Phoenix homes for sale, the west side of Phoenix has numerous options for anyone looking to take advantage of the upcoming gains of the Phoenix real estate market (though Glendale is projected to do very well, too) with a starter home for their family that is still incredibly close to downtown Phoenix.
Regardless of which area you pick, rest assured that the Phoenix, AZ real estate market is well-positioned to continue delivering returns on investment in 2017. But buyers, act now!