One of the most important things people should do before buying or selling in any market is make sure they understand that market.
Do your research and examine the following:
- Demand
- Property Prices
- The Housing Supply
- The Rental Market
By making sure you completely understand the market in which you’re buying or selling, you can make informed choices about what your property-related decisions may be.
If the time has come to buy or sell in Phoenix, Arizona in particular, here are a few helpful things you might need to know. Discover the latest trends, insights, and tips for navigating the Phoenix housing market. Whether you’re buying, selling, or investing, our comprehensive guide to the Phoenix Housing Market has you covered.
Navigating the Phoenix Housing Market: Your Comprehensive Guide
Before diving deep into the intricacies of the Phoenix market when you’re buying or selling property, take a moment to view current trends and determine the general state of the market.
In early 2021, building permits were on the rise, and prices were on a tear. Financial experts were also pleased to report that financial health in the area was also increasing.
These can be promising signs when you’ve been thinking about building a new home or selling your old one to fund a project.
Median House Prices
In May 2020, median house prices in Phoenix were at $300,000, which is $30,000 higher than the national average. However, a 17% increase was seen in a 12-month period, with house prices rising to approximately $345,000 in 2021.
This is good news for those wishing to sell their homes quickly. You can make contact with a professional home buyer or realtor and take advantage of your property’s increased value.
Median Rent Prices
Homeowners don’t tend to keep an eye on median rent prices, but it can be worth your while if you’re a rental property owner. While Phoenix rent prices are below the national average, they are still increasing.
From 2020 to 2021, they rose 8.4%, and the current median is $1,587. In April 2020, the median was $1.474.
Housing Supply
Homeowners tired of managing their aging housing stock are likely looking at their options around selling. The housing supply in Phoenix may give you the confidence you need to sell your properties before maintenance becomes more than you can manage.
Even though the housing supply is down 1.23% from 2020 and is at its current lowest record, permits suggest that might change. There has been an increase in permits being filed for multi-unit and single-family homes in Phoenix.
Foreclosures
Foreclosure rates in the United States are much lower than they used to be, and Phoenix is no exception to that rule. Just 0.1% of homeowners are going through the foreclosure process, which is below the national foreclosure rate of around 0.32%.
While financial health may be contributing to this decline, property purchasers may also play a part. Instead of waiting until the bank claims a home, owners are able to enjoy fast cash sales through professional property buyers.
Significant buyer demand in the general public also means many homes are being snapped up before banks move to take over the property.
The property market can be complicated, but it can also be enlightening. The more you learn about what the market is doing, the easier it might be for you to make decisions surrounding your future property sales and purchases.
Economic Factors
The Phoenix housing market is also influenced by broader economic factors. The job market in Phoenix has been robust, with a steady increase in employment opportunities across various sectors. This economic stability attracts more people to the area, increasing demand for housing. Additionally, low mortgage rates have made home buying more accessible, further driving up demand and prices.
Neighborhood Insights
Different neighborhoods in Phoenix offer unique advantages and challenges. For instance, areas like Arcadia and Paradise Valley are known for their upscale properties and high demand, making them attractive for luxury home buyers. On the other hand, neighborhoods like Central Phoenix and South Mountain offer more affordable options, appealing to first-time homebuyers and investors looking for rental properties. Understanding the characteristics of each neighborhood can help you make a more informed decision based on your budget and lifestyle preferences.
Investment Opportunities
Phoenix has become a hotspot for real estate investors due to its growing population and strong rental market. Investors are particularly interested in multi-family properties and single-family homes that can be rented out. The city’s favorable economic conditions and population growth make it a promising location for long-term investments. Additionally, the increasing number of tech companies setting up operations in Phoenix has boosted demand for rental properties, providing steady rental income for investors.
Future Trends
Looking ahead, the Phoenix housing market is expected to continue its upward trajectory. The city’s population is projected to grow, which will sustain demand for housing. Moreover, ongoing infrastructure projects and urban development initiatives are likely to enhance the city’s appeal, attracting more residents and investors. However, potential buyers and investors should also be aware of possible challenges, such as rising property taxes and changes in zoning laws, which could impact the market dynamics.
Tips for Buyers and Sellers
For buyers, it’s essential to get pre-approved for a mortgage to strengthen your negotiating position. Working with a knowledgeable real estate agent who understands the Phoenix market can also provide valuable insights and help you find the best deals.
For sellers, staging your home and making necessary repairs can significantly increase its market value. Pricing your property competitively and being flexible with negotiations can also expedite the selling process.
In conclusion, the Phoenix housing market offers a wealth of opportunities for buyers, sellers, and investors. By staying informed about market trends, economic factors, and neighborhood insights, you can make well-informed decisions that align with your property goals. Whether you’re looking to buy your dream home, sell your property for a profit, or invest in rental properties, understanding the Phoenix housing market is key to achieving success.