If you’re keeping even somewhat of an eye on Phoenix real estate, you may have noticed some pretty significant changes in recent months – including an increase in listings and sale prices. What else do you need to know about the current state of affairs? We’re breaking it all down for you right here.
#1: Prices Are More Than Rebounding
Home prices in the Greater Phoenix area are reaching 2006 levels and, in some cases, even exceeding them. Even still, the median price in many popular neighborhoods around the Valley comes in under $300,000 – with many of them doubling in value since the market hit rock-bottom at the height of the recession. (Source: AZCentral.com)
#2: First-Time Homebuyers Are Driving Up Demand
The past 5 years in Arizona have seen an increase in property value of 39 percent on average and homes under the $300,000 range are moving ultra fast. As millennials are just now beginning to purchase their first homes, demand is going up faster than supply. Nearly half of homes for sale stay on the market for less than 30 days, which means it’s a seller’s market. (Source: AZFamily.com)
#3: The Priciest Neighborhoods Are Exactly Where You’d Expect
Paradise Valley, Carefree, Scottsdale and North Scottsdale continue to have the most expensive real estate. In Paradise Valley’s 85253 zip code, the median price reached $1.4 million in 2017, up approximately 17 percent from the previous year. In Scottsdale, DC Ranch’s exclusive Silver Leaf neighborhood houses a mansion recently sold for a record $18.5 million. (Source: AZCentral.com)
#4: Flips Are Hot (Again)
Ten years since the United States’ housing market collapsed, real estate flips are again on the rise. In the Phoenix area, more than 8,500 homes sold last year were flips – that’s more than anywhere else in the country. Just how hot is the local flip market? Hot enough to attract Zillow’s “Instant Offer” pilot program, an initiative that allows investors the opportunity to skip the bidding process and purchase a home online, which Zillow will then “flip” with slight renovations and the investor can turn around and sell for profit. (Sources: NPR.org and DigitalTrends.com)
#5: People Are Migrating To Arizona
Phoenix is one of the top markets for homeowners who are being priced out of more expensive markets like California, New York and Chicago. Between 2016 and 2017, Arizona’s capital gained approximately 80,000 new residents looking for more affordable real estate. Other U.S. cities to make the list include Dallas, Houston and Charlotte. (Source: BizJournals.com)
What kind of questions do you have about buying a home? Ask them in the comments below and we may just turn your questions into a future blog post!