Current Trends in the Phoenix Real Estate Market

Phoenix: a lively city in the middle of the desert where you can enjoy the great outdoors all yearlong! It also continues to be one of the hottest growth areas in the United States. With Phoenix being one of the strongest real estate markets in the country for several years now, in February 2020, Norada, (a real estate firm founded in 2003 providing investment properties throughout the United States) reported that the forecast for 2020 and 2021 show that home prices will continue to increase by more than 5% (although the Covid-19 pandemic has slowed things slightly, the general outlook remains the same).

With the housing market up almost 18% since two years ago, let’s look at some of the other general real estate trends happening in this thriving state capital.

  1. For investors, demand remains high across the board.
  2. For those looking to move or relocate, good news, affordable homes can still be found.
  3. Downtown is being renovated, with mixed-use projects being built, and public transit significantly improved.
  4. Walkable communities are being cultivated which is a radical shift from the suburban sprawl downtown had Phoenix been known for.
  5. There is a vibrant college student-life with several large college campus’ in the this state’s capital, meaning that there are easily more than100,000 college students renting in the Phoenix housing market at any one time.
  6. A high tourist population that comes to enjoy the over 200 golf courses in Arizona, most located in and around the ‘Valley of the Sun’ aka Phoenix. This makes Phoenix a great place to buy a single family home or condo to rent out to tourists.
  7. Retirees abound! The same things that attract many people to Phoenix as snowbirds cause many to retire here permanently.

Phoenix Real Estate Market Predictions

On average, Phoenix real estate market has seen its home value jump higher versus the rest of the U.S. And it looks like prices will continue to appreciate, (according to Zillow) that’s because, like much of the country, there isn’t enough inventory to satiate the current level of demand.

There is, in fact, quite a bit of construction currently under way, but it doesn’t look like it will ease the inventory burden any time soon.

“We don’t really have enough new homebuilding going on to satisfy the population increase that we’re seeing,” said Phoenix-based real estate economist Michael Orr.

Competition, at least in the way Phoenix has seen, will see to it that the unprepared don’t get very far. Therefore, have everything in place before you make a move. Cash, buyers, specifically, will have an advantage over anyone that needs to wait to secure funding. Be sure to have sufficient funds on you at all times, as to keep one-step ahead.

And the last trend we see happening in the Phoenix real estate market is downsizing. This is certainty understandable as a result of much of the economy slowing down due to the virus. Large and small business alike are needing to downsize to keep their operations going; many choosing smaller real estate footprints and shifting those savings into employee payroll.

If you are in this position, whether moving out of the city, transitioning to a smaller home or relocating your business, Remoov is a furniture donation and furniture pick-up company that takes 100% of the stress off you. They take all your unwanted items and donate, recycle, or sell them turning your surplus inventory into cash!

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