(Newswire.net — April 14, 2023) — Synonymous with year-round sunshine and vast desert landscapes, Arizona is the 14th most populous and fastest-growing state. With more than 860,000 new residents over the past decade, Arizona’s population has grown by 13.4%. Whether you currently live in Arizona or are planning to move here, the Arizona real estate market is vibrant. After the upheavals of recent years and the impact of the Pandemic, real estate prices are finally easing. The real estate market is beginning to develop actively. Now is the time to turn to Jason Penrose, realtor, for qualified help in choosing your optimal housing at a favorable price.
2023 Arizona Real Estate Market Overview
The popular saying “all real estate is local” also applies to Arizona. Housing market conditions vary from state to state. For example, real estate prices in one location have recently fallen while others have risen.
The trends and statistics regarding the housing market in Arizona are quite interesting for investors planning to buy real estate here at a favorable price. Home prices in Arizona are generally falling. As of January 2023, the median home price in the state was $406,200, according to Redfin. Compared to the corresponding month in 2022, this is a price decrease of 3.8%. Compared to 2022, 39% fewer houses were sold. Homes were on the market for an average of 70 days in January, up 32 days from a year earlier. During the same period, the sales rate was approximately 97%. In January, about 37.4% of the houses for sale, their owners were forced to lower their prices to complete the transactions.
Buying or Selling Real Estate in the Arizona Real Estate Market in 2023?
The right time to buy or sell a home often depends on many key personal and financial factors.
It is essential to consider local market conditions, the state of prices, and your financial investment opportunities. Home sellers have an advantage in the Arizona real estate market. Two key factors contribute to this. A steady stream of residents from expensive states like California and a housing shortage has bolstered home values. Yet, the real estate market in the state is slowly cooling down. One of the main reasons is that rising mortgage interest rates have made monthly mortgage payments less affordable for potential buyers.
If you are selling your home, actively work with an Arizona real estate agent to fully understand the home’s value and prepare for further successful negotiations with the buyer. If you are a home buyer, it is also important to actively cooperate with the real estate agent, explain your criteria for finding the desired property, and give your requirements.
Some market dynamics are favorable for Arizona home buyers. For example, median home sales prices have fallen in many parts of Arizona. According to Redfin, the total cost of buying desirable properties fell by about 4% in January. But not everywhere. Prices have risen in some areas. As a potential buyer, it’s important to identify areas of the state where home prices fit your budget. Numerous online calculators available online will help you determine your home-buying budget. It’s also important to get pre-approved for a mortgage to know how much you can afford to buy real estate in Arizona.
Arizona housing market forecast
After two years of rising prices in the Arizona real estate market, some areas of Arizona are experiencing declines in the value of various properties, while the state as a whole appears to be more stable, as real estate prices are forecast to begin their active growth this year.
Markets are normalizing in many parts of the country. This means that property prices are not rising as fast as they once were. However, there are always competing expectations when predicting future market prices. Water issues in Arizona are also important to consider when considering buying real estate. As a result of climate change and the resulting water scarcity, the state is expected to undergo major lifestyle and environmental changes in the coming years. Some cities are passing new ordinances that limit the size of backyard pools.
Find an experienced Arizona real estate agent to find and buy the real estate you want
As housing market conditions in Arizona and across the country continue to fluctuate, the help of qualified real estate agents is essential. It is important to find an agent who is well-versed in this area and fully understands the dynamics of price changes in the local real estate market. When a friend or family member has experience with a local agency, you should ask them for a referral. Whether buying or selling, an experienced real estate agent can help you better navigate your current situation, including determining the right price to list your home or recommend a future purchase.
Over the past two years, Arizona’s housing market has become the fastest-growing housing market in the country, thanks to strong investment growth. On average, Arizona was one of the cheapest markets in the country and attracted many buyers. The attractive market has led to increased demand, which has led to higher property prices. According to Zillow, the state’s median sales price has increased 54.2% over the past two years and 93.2% over the past five years.
If you’re looking to buy or sell a home in warm, sunny Arizona, you may have many questions about the housing market. It is important to actively communicate with local real estate professionals to learn what is happening in the Arizona real estate market. To get detailed information about the area, you should contact a qualified real estate agent who knows all the key aspects of the market. Arizona real estate agents are the engine of your experience.
Low prices, profitable investment opportunities in Arizona real estate, and a housing shortage
The lack of supply has contributed significantly to the affordable housing crisis. Investors across the country are watching the situation to meet market demand. Since a large number of employees now have access to remote work, many of them are no longer tied to their employer’s office space. Instead, they have the opportunity to move to cheaper cities and enjoy a higher quality of life and lower financial costs.
Prices in the Phoenix real estate market may have been significantly inflated during the pandemic. The Phoenix real estate market is very competitive. Homes typically receive three sales offers within about 40 days. The average home sale price was $435,000, which is 8.9% more than last year. Over the past 12 months, the average sales price in Phoenix has increased by 7%. Phoenix is now one of the most important markets in the United States of America, with a large number of interesting investment opportunities.
However, the housing supply remains limited, and it will take some time for prices to normalize. Due to the limited number of properties available, property prices are expected to remain high. Phoenix may be the hottest market in Arizona, but the entire state was not severely affected by the epidemic in 2020. In 2023, the demand for real estate remains high, and new construction begins to grow actively.
Key nuances of the Arizona real estate market
Rising inflation and rising interest rates will affect the housing market in Arizona. The impact on Arizona will likely continue as mortgage rates and inflation remain high. As interest rates and inflation rise, rents will likely increase as well.
The housing shortage remains a problem, and rents will continue to rise beyond the current levels. As such, Arizona will remain an attractive market for investors looking for rental income from their purchased properties, not short-term gains. The outlook for the Arizona housing market is that home prices may fall, but not dramatically. Due to excess capital and market demand, home prices in Arizona are expected to continue to rise in the coming year. Experts expect the number of affordable properties to increase and housing prices to remain relatively low until the end of 2023.
Is it better to buy real estate in Arizona with renovations or without?
It should be taken into account that finishing the interior will take a lot of time and require additional financial investments. Arizona’s current real estate market offers both renovated and unrenovated real estate options. Let’s take a look at the key pros and cons of buying a renovated property in Arizona. When you buy a condo in Arizona with a major renovation, you can move in immediately after the purchase, which is very convenient. No further work is required.
The sellers often provide a guarantee for all the work performed, which prevents any unexpected breakdowns. The key advantage is the ability to move quickly to a new home. Not every buyer gets another apartment during the renovation. At the same time, it is very unprofitable to rent an apartment when you have already bought your own house.
By buying a house with minimal repairs, many problems will be eliminated. No need to think about interior design, choosing numerous building materials, and hiring and supervising builders. However, there are also very interesting prospects for renovation. When selling unrenovated houses, which are offered by numerous sites for the sale of Arizona real estate, such types of real estate have their own very interesting features.
The buyer is directly responsible for the quality of the repair, including all finishing works. If a defect in the interior coating of a new apartment is discovered, the contractor is contractually obligated to repair it. However, buying a house for renovation has certain disadvantages. Planning may not meet the buyer’s wishes. Maybe you don’t like the design. Owners may be disappointed if the final quality of all materials and finishes used is not specified in the contract. In addition, it is not possible to immediately detect errors since all finishing work has already been completed. Despite the disadvantages of buying such an apartment in Arizona, you can buy an apartment that is move-in ready.
When buying a home for renovation, any defects in the property can be seen and fixed. In addition, the design and all materials are chosen by the owner. Depending on your wishes and needs, you will cope with the repair and do everything with the highest possible quality. Since there is no interior design in the new apartment, all walls, ceilings, and floors can be carefully inspected to identify and eliminate defects. In the premises without repairs, you can create your layout, install various modern systems and place all the necessary communications as conveniently as possible for the owner.
It is important for the owner to check the repair work himself and ensure their high quality. You can independently plan your design and choose all the necessary building materials. You can create a future housing project yourself. Additionally, you must find and hire builders, personally supervise the renovation and control all the processes. You cannot move into a house without urgent repairs.
There are also offers from the Arizona real estate market for the purchase of ready-to-move-in houses. In such places, the walls are already plastered, all fixtures are installed, and ventilation systems are completed. Buying such a home in Arizona has key advantages: Owners do not need to do repairs. You can choose your design. Repairs take much less time and effort. Buying such a house will make life easier for the owner, but it is worth considering that it is more difficult to detect various flaws.