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 city also recognizes the need for affordable housing, and they allow people to build and rent out ADUs as affordable housing, especially if the property is within walking distance of public transit. There were 710 homes sold in March this year, down from 983 last year. How to Renew Your Driving License in Malaysia, Fiance Visa UK 2022 Guidance | STEP-BY-STEP | Migrate, How Out-Of-State Students Can Get In-State Tuition - The College Funding Coach, Maltese Puppies For Sale in Washington Pennsylvania, How to Become a Teacher in Washington | BestColleges, 11 Best Sheriff, Police Department Agencies in WA (2022). Investing in Phoenix's real estate can be a worthy investment due to a steady rate of appreciation. Higher-priced homes have started to come . Only Texas and Florida outpaced it, in terms of year-over-year growth. Median sale prices rose in Phoenix from $325,000 in January 2021 to $404,300 by October, a 24.4% . According to Hale from Realtor.com, total inventory is predicted to grow by 22.8% in 2023 compared to 4% growth overall in 2022. The inventory is low, but opportunities are there. READ REDFIN'S, Do not sell or share my personal information. Our research team releases regular weekly housing trends reports, looking at inventory metrics like the number, Spring 2023 iteration of the WSJ/realtor.com Emerging Housing Markets Index, which surfaces emerging housing markets--areas that, New home sales increased again in March, ticking up 9.6 percentage points from Februarys revised rate, What did the data show? While most experts, including Goldman Sachs, agree that the housing market is beginning to normalize after pandemic-driven demand, there is stilla lot of uncertainty. Some own second homes in Arizona communities restricted to active adults, while others stay in trailer parks. The Chandler area offers strong market fundamentals in addition to a favorable tax and regulatory climate. There are easily 100,000 college students renting in the Phoenix housing market. Bank Failures 2023: Will Collapse Affect Housing Market? New inventory was down 19.1% year over year, which is consistent with the decline in sales volume. Thats the most inventory weve seen over the summer when the market was at its peak of just 3,500. Population growth increases the demand for housing on both the purchase and rental sides. Phoenix is so large that it doesnt just host the flagship Arizona State University campus in Tempe. Home prices in Arizona were down 7.4% year-over-year in March. San Francisco (-0.8%) and Los Angeles (-0.8%), Danielle Hale: This months highest-ranked emerging market is Lafayette-West Lafayette, IN, the same as last quarter in our Winter 2023, Danielle Hale:Active inventory was up at a slower pace, with for-sale homes up 39% YY. Also, since sellers are facing more competition with high inventory and high interest rates, buyers might have a slight advantage to ask for various perks on the contact (inspection, terms, cheaper price, etc.). A high or growing percentage of homes selling above listprice indicates that the housing market is competitive and bidding wars are becoming more common. Better yet, a large number of those properties dont have a mortgage on them. Neighborhoods in west and South Phoenix are the most cost-burdened. Buy a house, rehab it, and build a granny flat, and you have two rental properties for not much more than the price of one. The data indicate that the housing market in Arizona is diverse and offers options for buyers with different budgets. 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. He also holds a California Real Estate Brokers license, GRI, CRS, and CRB designations as well as the e-PRO and the SFR certifications. 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. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals such as duplex and triplex in Class A neighborhoods. According to a report from the National Low Income Housing Coalition (NLIHC), rental prices in Arizona have become out of reach for many residents. The pace of population increase in Arizona is the fourth fastest in the country. All rights reserved. In 2022, foreclosures were down 34% compared to 2019, according to ATTOM Data's Year-End 2022 U.S. Foreclosure Market Report. TL; DR - Housing Market Forecast for 2023 + The Next 5 Years. Although the median sale price was down 2.2% in February 2023 Y-O-Y, the number of homes sold dropped by 44.4%. 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. In a normal market, there was an average of 35,000 homes up for sale. With all other things being equal, steady population growth tends to put upward pressure on home prices. REDFIN IS COMMITTED TO AND ABIDES BY THE FAIR HOUSING ACT AND EQUAL OPPORTUNITY ACT. "It seems clear that government and mortgage industry efforts during. La Rue began his career in real estate in 1983 in Phoenix, Arizona as a sales associate. Other snowbirds sell their condo and move into single-family homes when they decide to stay in Tucson year-round. The state has a relatively low transfer tax on deeds or land contracts, too. The median listing home price per square foot was $269, which is slightly higher than the national average. 0.981 Median sale to list ratio (February 28, 2023) 12.9% Percent of sales over list . , The direction and pace at which housing supply changes indicate whether the options for buyers are increasing or decreasing. Some of the popular neighborhoods for buying a house or an investment property in Phoenix are Vistancia, Laveen, Deer Valley, South Mountain, Biltmore, DC Ranch, Arcadia, McDowell Mountain Ranch, Anthem, North Scottsdale, Cave Creek, Old Town, Litchfield Park, Trilogy at Vistancia and North Phoenix. Homes in the Phoenix housing market are approaching the 2006 record. The problem buyers have is that they cant find inventory. can also indicate whether homes are lingering on the market or being sold faster than sellers are listing them. The number of homes for sale continues to climb, but, Danielle Hale: The jobs market continues to register a long-time low in the unemployment rate & the emerging markets have even better em, Danielle Hales: New listingsa measure of sellers putting homes up for salewere down again this week, by 21% from one year ago. Everybody is kind of going Woah! The three most important factors when buying real estate anywhere are location, location, and location. Of course, there is also a great deal of uncertainty in the air. So the luxury markets are still doing very well., Inventory is an important piece of the equation, according to Eric Gibbs, the president of the Arizona Association of Realtors. What home prices will look like in 2023, according to Zillow - Fortune