(Newswire.net — November 19, 2018) — Arizona’s real estate market is on the rise, and in Southern Arizona, the market shows no signs of slowing down. The region, which includes Tucson, Vail and Oro Valley has also seen a rise in the number of new home permits to hit the market in September. Year-over-year, new home permits rose at a rate of 7.6%, up to 241 permits in September.
Year-to-date permits rose from 2,376 a year ago to 2,762.
Hiring sprees in the area are a key reason for permits and new housing rising in the area. Economists also attribute growth to private sector employment and improvement. The new home market has favored buyers, allowing buyers to enter in at price points that they may not have been able to afford in the past.
Existing real estate growth is down, falling 3.3% year-over-year in September. Inventories remain tight, and many would-be buyers are looking at alternative options, such as building their own homes or waiting until they’re in a better financial position to buy a home.
New home closings for the year are projected to rise 10.5% across the region, with new home permits ending the year up 7.9%.
Business experts have singled out Arizona as a prime market for the property management industry. Arizona’s strong recovery in the market has been able to lure in new investors focusing on property management. The potential of the market is on investor radars, and the continued growth projection shows no signs of slowing up.
Foxboro Ranch Estates, in northern Arizona, is seeing a rise in second home building as more people move to the state.
The 2017 year was one of the best years in the home building industry. Arizona had an influx of sales. Active real estate licenses in the state are also on the rise, increasing to 45,000+ licensed real estate agents in January 2018.
Arizona’s strong market over the past two years may feel the impact of markets cooling across the country. The market is facing a strong rise in prices, pushing many first-time homebuyers out of the market as they wait for prices to fall or to save more money to put down on a house.
Rising mortgage rates are an additional concern thanks to numerous rate increases by the Fed. Mortgage rates may hit 5.5% in 2019, according to some economists, and this amount would result in fewer people being able to afford a new home.