Arizona real estate is primed for purchase. All over the country, we have been watching new markets pop up as millennials graduate and flock to new cities. Populations become rapidly dense, and attaining housing becomes something like a game. Prices are not the only competitive element. The entire housing experience becomes what many jokingly call a full-time job. Offers and pre-approvals are expected at open houses and properties sell before they’re even listed.
As more people saturate a city, the residential market flourishes. With more people come more opportunities for restaurant, retail, educational, and entertainment establishments. This further drives up the cost of real estate, as commercial and residential buildings compete for space and tenants.
Phoenix is no stranger to the population barrage. Right now, the city boasts the strongest economic growth in the state, and consequently, the highest demand for housing. Right now is the time to purchase, as rates and prices will likely increase in the next few years. As the population continues to grow, the housing market will respond, and purchasing will become more competitive.
Single-family rental properties have especially promising potential in Phoenix. Retirement and second homes are still popular trends in the Phoenix area, but we do not see this as the main driver of the real estate economy anymore. More people than ever are moving southwest to settle permanently. Life is affordable, graciously paced and bubbling with new and safe developments.
A healthy economy has allowed Phoenix to add jobs at twice the rate of the national average. Many jobs have emerged in healthcare, retail and the large finance district. Prescott, Tucson, and Flagstaff have also supported great employment growth.
What we once watched in the AZ housing market boom and bust has flushed. Properties that swelled with price inflation, then foreclosed have mostly passed through the system by now, leaving current prices at face value. Now that the market has reached a balanced neutrality, prices will likely begin to climb. That’s why investing now is your best bet.
There is still a prominent renting trend in Flagstaff, Tucson, and Phoenix. About 40 percent of home and dwellers are renting. This means that there is a golden opportunity for all investors who want to purchase and rent. Single-family properties and even partitioning single-family homes in multiple rental units is extremely advantageous.
Investing in Arizona real estate is especially favorable right now given mortgage rates. The projected continued growth in Phoenix offers an equity cushion to buyers. New mortgages will grow quickly while the risk of default will remain average. Loans for construction and other home improvements will remain low, too, helping encourage buyers to invest and refurbish.
If you are looking for the best retail investments, southeast Phoenix suburbs are calling your name. Trailing closely behind are Tucson and Prescott.
Some predictions for the coming years:
- In Phoenix, 60,000 new single-family homes will be built in the next three years
- In Phoenix, 60,000 new apartments will be built in the next three years
- In Prescott, 5,000 homes will be built
- In Tucson, 5,000 apartments will be built
- In Flagstaff and Yuma, 1,000 new units will emerge. It will likely be a combination of houses and apartments, trending more heavily toward apartments.
When it is time (which it is, now!) to look for houses for sale in Phoenix AZ, get in touch with Jeff Barchi real estate agent in Tempe. He can help you move fast and make an investment that will be sure to enrich and fortify your future.