As of the end of March 2022, Norada reported that Phoenix has been one of the hottest real estate markets in the U.S.
- The Phoenix real estate market has not only recovered after a slump due to COVID-19 but the demand has reached new heights; one of the nations’ top 10 hottest markets in 2022
- Zillow’s home value index, shows property values in Phoenix-Mesa-Scottsdale Metro grew by over 31% from Feb 2021 to Feb 2022.
- Phoenix-area home prices are forecasted to continue to rise at a brisk pace over the next twelve months.
- The supply of active listings stands at an all-time low.
- The annual rental growth in Phoenix was 24.8%.
- The median sales price up 28.5 percent year over year and the average sales price is up +22.5%.
- The median sales price in the Phoenix region was $449,853 in February 2022. It is $99,853 more than last February’s median price.
- The Greater Phoenix area is expected to be a seller’s market in 2022.
According to Redfin, the Phoenix housing market is very competitive.
- In February 2022, Phoenix home prices were up 31.3% compared to last year, selling for a median price of $440K.
- On average, homes in Phoenix sell after 28 days on the market compared to 33 days last year.
- Around 50% of homes were sold above their original asking prices.
- About 14.2% of the listed homes were sold with price drops.
- The sale-to-list-price ratio was 101.2%.
- A third of all home purchases in Greater Phoenix this spring were purchased with cash, a more than the 6-percentage-point increase from the previous year.
- According to their migration statistics, over a quarter of Phoenix’s prospective out-of-state buyers came from Los Angeles. Another 17% were residents of Seattle.
There’s more demand for homes than there is supply, and it’s what we see in most housing markets today.
The Massive Snowbird Market
Arizona has long attracted retirees who couldn’t afford Florida or wanted a cleaner, allergy-free air that never included hurricanes.
- Quartzite, Arizona 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.
Growing Retiree Market
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.
- 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.
Major 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.
- Phoenix isn’t redeveloping downtown to cultivate 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.
Real Estate Market Is Solid
According to Norada Real Estate A+ accredited business, as of April 2022, the prediction for the coming year is a continued market of growth; no housing market crash is in sight just yet.
- The housing market is coming off a year in which home prices in the United States increased by an unsustainable 18.8% in 2021.
- Zillow predicts that the year-over-year rate of home price growth will hit 22% in May.
- According to another study, the total value of private residential real estate in the United States increased by a record $6.9 trillion in 2021, to $43.4 trillion.
- One of the most widely held housing market predictions for 2022 is that inventory will remain scarce but price appreciation will be slower than it was this year.
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