The neighborhoods in Phoenix must be safe to live in and should have a low crime rate. But, some areas like right like Phoenix, Chandler, and Glendale are in balanced markets--still very good for buyers. But, some areas like right like Phoenix, Chandler, and Glendale are in balanced markets--still very good for buyers. Only Texas and Florida outpaced it, in terms of year-over-year growth. However, the market is expected to rebound slightly by the end of January 2024 with a 0.2% increase in prices. Elevated mortgage rates are perhaps a bigger deterrent for would-be sellers than for would-be buyers. The increase in mortgage rates is the key reason new listings have declined sharply year over year. There are plenty of reasons to invest in the Phoenix real estate market, only ten of which weve provided above. Can You Buy Lottery Tickets Online in Washington State? When is the Next Fed Interest Rate Decision for Hike? Land and multi-unit residences included. People love the house, but thats it, said Scott. The median listing home price in Phoenix is $464.9K, with a median listing home price per square foot of $284. Housing Market Predictions For 2023 | Bankrate ALSO READ: Arizona housing market forecast 2023. However, the trend for median days on the market in Maricopa County, AZ has gone down since last month, and slightly up since last year. According to Danielle Hale from Realtor.com, mortgage rates and home prices will remain elevated, but slow to their pre-pandemic average of 5.4%. Homes in Maricopa County, AZ typically sell after 62 days on the market, which is slightly longer than the national average. According to the U.S. Census Bureau data, the population of the city of Phoenix rose by nearly 15% from 2010 to 2019. Phoenix is so large that it doesnt just host the flagship Arizona State University campus in Tempe. Bank Failures 2023: Will Collapse Affect Housing Market? Are you curious about the state of the housing market and how it's affecting mortgage rates? The direction and pace at which home prices are changing are indicators of the strength of the housing market and whether homes are becoming more or less affordable. There was a 97.8% sale-to-list price, down 3.7 points year over year. Maricopa County has the highest number of homes for sale and rent, with a median listing home price of $485.3K and a listing price per square foot of $270. The median sales price also decreased by 8.7% year over year to $419,900. Mortgage rates also play an impact here. Phoenix is the seat of Maricopa County and the largest city in the state. For example, the Phoenix metro area is projected to experience a 0.9% decline in housing prices by the end of February 2023, followed by a further 1.6% decline by the end of April 2023. Are there enough homes for sale to meet buyer demand? It is the biggest city in Arizona and the states capital. The average months of supply is 2 months, up 1 year over year. New inventory was down 19.1% year over year, which is consistent with the decline in sales volume. TL; DR - Housing Market Forecast for 2023 + The Next 5 Years. In Arizona, the Fair Market Rent (FMR) for a two-bedroom apartment is $1,097. Demand rises for luxury homes in Phoenix area, TRENDING: City of Scottsdale cuts off Rio Verde Foothills residents from water supply. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates. It has now joined seven other metros across the country in the same boat including Denver, Las Vegas, Los Angeles, Portland, San Diego, San Francisco and Seattle. Zillow's Bold Predictions for 2023 - Zillow Research Casa Grande had the fastest growing rent, up 10.9% since this time last year. Our Real Estate Data Library is based on the most comprehensive and accurate database of MLS-listed for-sale homes in the industry. Tucson like Phoenix sees a massive influx of snowbirds, and retirees who flock here during the winter. Higher-priced homes have started to come . The presence of universities also influences local home prices and rents. And as of January. In 2022, Jiayi Xu: March 2023 marks the fourteenth month of slowing rent growth, and eighth month in a row with a single-digit rate of increase for 0, Danielle Hale: With home prices still elevated & inflation easing but still well above the target level, Spring 2023s emerging market. Its been up for about three weeks now, give or take, said Laura Scott, who is trying to sell her home in Sun City West, adding it has a lot to offer. Join our mailing list to receive the latest data and research. Taking a glance at Arizonas 2023 real estate market. In scenario #2, the consumer price index responds more to the Fed's rate hikes, and there is a gradual deceleration of . Flagstaff MSA is the most expensive MSA where you need an hourly wage of $24.35 to afford a 2-bedroom rental. In March 2023, there were 34,368 homes for sale in Arizona, up 18.6% year over year.The number of newly listed homes was 9,966 and down 28.1% year over year. The housing analysts present an optimistic housing market forecast for the Arizona area till 2023. By March of 2019, that number had grown to 4,224 listed properties. Some may envision 2023 shaping up to follow in the footsteps of the 2008 subprime mortgage crisis. READ REDFIN'S FAIR HOUSING POLICY AND THE NEW YORK STATE FAIR HOUSING NOTICE. Furthermore, there are 37 neighborhoods in Phoenix, with Arcadia being the most expensive neighborhood, with a median listing home price of $1.6M, and Central City South being the most affordable, with a median listing home price of $305.5K. The n, On the supply side, the five most-improved large markets saw inventory spend 41 days on the market, roughly a week more than last March and, The median asking rent in the 50 largest metros increased to $1,732, up $15 from last month & down $32 from last years peak. Good cash flow from Phoenix investment properties means the investment is, needless to say, profitable. Not only were homes purchased in 2020, 2021, and early 2022 at great rates, but a large number of refinances also took place. Hes also the host of the top-ratedpodcastPassive Real Estate Investing. According to sale-price data from Realtor.com, the Phoenix market saw a median peak price of $470,000 last May, but subsequently fell by nearly 13% to $410,000 by December. We asked when can we expect to be under another recession, and Cordova responded, So, we still think a recession is likely next year. In March 2023, the median listing home price in Maricopa County, AZ was $494K, which was a decrease of -1.2% compared to the previous year. Video: April 2023 Economic and Housing Market Update To keep up with the rapid changes in the economy and housing market, the realtor.com economics Apr 28, 2023 Buyers have been waiting to regain power in the market but have been faced with bidding wars the past couple of years, then struck with high interest rates. Similarly, Scottsdale has a track record of being one of the best long-term real estate investments in the nation if you are an investor. It has now joined seven other . Without advertising income, we can't keep making this site awesome for you. After years of leading the nation in home price growth, the Phoenix metro is now dipping into the red, according to the latest S&P Corelogic Case-Shiller Indices, released April 25. The average Arizona home value is $409,038, down 0.6% over the past year and goes to pending in around 40 days. Home prices continue to rise as a result of a lack of available properties. In some neighborhoods, the average rental home may rent well over $2,500 a month. Canada Housing Market Forecast: Will Prices Drop in 2023? With all other things being equal, steady population growth tends to put upward pressure on home prices. Since then, while median home sale prices have fallen as mortgage rates jumped, in more recent months the housing market here has shown signs of leveling out, potentially giving buyers another chance to jump in while . Rent has, Shifting buyer demand toward smaller, more affordable markets puts upward pressure on prices. Between 2010 and 2018, the City of Phoenixs median income increased by only 10%, median rent increased by over 28%, and the median home price increased by over 57% during this time. The median home sold price was $445K. If The Housing Market Crashes What Happens To Interest Rates? Realtor.com Research - Housing Data & Real Estate Market Trends Remember, caveat emptor still applies when buying a property anywhere. The openness, they want the open floorplan with a nice size backyard, he said. The median listing home price per square foot was $269, which is slightly higher than the national average. If you drive, youll notice for sale signs popping up across the Valley, but we know prices just arent as high as they used to be. , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. This shows that homes in Phoenix are more expensive compared to other areas in Maricopa County. There are currently 34,368 residential homes for sale in the United States. Not just limited to Phoenix or Arizonabut you can also invest in some of the best real estate markets in the United States. For more information, visit www.richlarue.com, Copyright 2023 AZ Big Media | All Rights Reserved | Site by Blufish, Sedona and Flagstaff rank among best Airbnb markets for cabins, 320-acre retail destination Five North at Vistancia takes shape in Peoria, 10.9 acres of land in Buckeye sells for $7.93 million, Arizona ranks No. Casa Grande rent increased 5.7% last month, making it second. The year-over-year median sales price is expected to be 10.64% lower. As people move through the new year looking to buy and sell, market trends are under a close eye. This trend is likely to continue for the foreseeable future unless inventory grows faster than demand or rising interest rates ultimately dampens the demand to that extent. Lake Havasu City rent had the largest monthly growth rate, up 6.1%. The state has a relatively low transfer tax on deeds or land contracts, too. The location creates desirability. An estimated 300,000 people stay all winter before returning home. 30251 Golden Lantern, Suite E-261