Check out these hot real estate markets in Arizona!
The Arizona real estate market is booming and home prices are skyrocketing. This is your chance to seize the moment and start making money in real estate! Now is the time to STOP RENTING and START OWNING your own home! Why do you wonder? Interest rates are steady and appreciation rates are increasing gradually. If you are renting, now would be a great time to buy with these low and steady interest rates. Plus, you can now purchase a home with 0% down, which is quite a shock to some. Many lenders are giving out loans to responsible buyers. Of course, you must have a 620 or more credit rating and at least 2 years of good working history in the same field to qualify for this type of loan.
When buying an investment property, there are so many benefits to consider when deciding between leasing vs. buying, but being a property owner has too many advantages to ignore. There are many benefits to home ownership over renting. You need to STOP MAKING YOUR LANDLORD RICHER! What you need is to start paying off your home today. Just think how nice it would be to say that you have paid off your property and no more mortgage payment is left. These hot real estate markets in Arizona can help make that dream come true. So, without further ado, let’s take a look at why you should invest in these two hot real estate markets: Scottsdale and Phoenix.
What’s Cooking in These Hot Real Estate Markets? Scottsdale Real Estate Market
The good thing about the Arizona real estate market is that it’s currently both a buyer’s market and seller’s market. Homeowners in Scottsdale also want to know what’s hot in their real estate market and what can they expect for the coming years. Here is why Scottsdale is considered one of the hot real estate markets in Arizona for 2018.
1. Home values will continue to rise
Get ready for a bright and lucrative year! Home values are continuing to rise in 2018 all over the US. According to the National Association of Realtors (NAR), this year will see a predicted growth rate of 5.5% which indicates towards great opportunities for many real estate investors in Scottsdale.
What does this mean for YOU?
If you’re a current homeowner, then congratulations – this is your time to shine! If you’re considering selling your investment property, there has never been a more perfect time than now. So, make the most out of these high home values and start making money in real estate.
2. New construction will make real estate more accessible
The lack of inventory and housing shortage in the housing market has, for many years, been a primary obstacle to homeownership for many Americans. The lack of inventory has pushed home prices up while wage growth stayed the same. So, even though now is a good time to buy a home, many buyers are missing out on great opportunities from the rising home values.
Where is the good news then? The Scottsdale real estate market is lucky because it has decent inventory and is expected to see a 9.4% point increase in new construction for single-family homes!
What does this mean for YOU?
Well, if you’ve been frustrated by the lack of inventory in the past, 2018 will bring new opportunities for you to find a budget-friendly home that suits your needs in Scottsdale.
3. Millennials will move into the suburbs
Millennials are becoming the largest group of homebuyers in the US housing market. With the new level of construction that is coming, many millennials and first-time homebuyers are increasing the demand for affordable homes. The surprising catch is that many of the new construction for single-family homes will be located in the suburbs. Why? Well, due to the availability of land and fewer zoning requirements, it’s more affordable to build there. As millennials age, they are settling down, having families, and many are flocking to the suburbs.
What does this mean for YOU?
If you’re a millennial who has suffered enough from the overpriced urban living, then consider living in the suburbs. The Scottsdale real estate market is considered as one of the hot real estate markets this year due to its wide variety of opportunities and choices. There are a number of suburbs here with many communities that will best meet your needs.
Scottsdale Real Estate Market Stats
Below are the best performing neighborhoods for real estate investing in Scottsdale according to Mashvisor’s rental property calculator.
- Median Property Price: $1,289,450
- Traditional Rental Income: $5,725
- Traditional Cash on Cash Return: 3.46%
- Traditional Cap Rate: 3.46%
- Median Property Price: $609,542
- Traditional Rental Income: $2,208
- Traditional Cash on Cash Return: 1.9%
- Traditional Cap Rate: 1.9%
- Median Property Price: $814,880
- Traditional Rental Income: $2,903
- Traditional Cash on Cash Return: 2.07%
- Traditional Cap Rate: 2.07%
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
What’s Cooking in These Hot Real Estate Markets? Phoenix Real Estate Market
In real estate, finding the best real estate markets to invest is the key to a successful real estate career. That is why we recommend that you to take a look at one of the hot real estate markets for 2018, which is the Phoenix real estate market. Here is why Phoenix is considered one of the hot real estate markets in Arizona for 2018.
1. Increase in inventory
The Phoenix real estate market in 2017 was known for its low inventory. There was always a high demand for investment properties, yet there was never enough supply to cover. However, we’re just starting to see a rise in the supply of high-end homes and luxury real estate in Phoenix. This increase in inventory is expected to make its way throughout coming years.
2. High demand for real estate investment properties
Due to the immense rise in job and population growth, the demand for investment properties is increasing in Phoenix. So many people are heading towards Phoenix dues to its growing economy. And what are these people hungry for? Homes, of course! This is a great opportunity for real estate investors thinking of selling. This is also a great opportunity for homeowners who want to benefit from their rental property and generate monthly cash flow.
3. Airbnb Phoenix
Investing in Airbnb rentals is absolutely legal in Phoenix. With the increase in demand and growing population, this short-term rental strategy just might be a winner. You can use this to your advantage and start benefiting from rental income from your property. To help make your search easier, use Mashvsior’s property finder tool to find an investment property for Airbnb Phoenix. You can use Mashvsior’s tools to find properties in hot real estate markets all over the country.
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Phoenix Real Estate Market Stats
According to Mashvisor’s rental property calculator, here are the best performing neighborhoods for Airbnb rentals in Phoenix:
- Median House Price: $235,000
- Monthly Airbnb Rental Income: $2,164
- Airbnb Rental Cap Rate: 5.93%
- Airbnb Rental Cash on Cash Return: 5.93%
- Airbnb Occupancy Rate: 48.23%
- Median House Price: $237,000
- Monthly Airbnb Rental Income: $1,574
- Airbnb Rental Cap Rate: 3.38%
- Airbnb Rental Cash on Cash Return: 3.38%
- Airbnb Occupancy Rate: 35.24%
- Median House Price: $255,000
- Monthly Airbnb Rental Income: $1,982
- Airbnb Rental Cap Rate: 4.48%
- Airbnb Rental Cash on Cash Return: 4.48%
- Airbnb Occupancy Rate: 37.26%
Hot Real Estate Markets in Arizona in 2018: The Bottom Line
The Arizona real estate market is appealing to many real estate investors. There are so many reasons why you should start investing in these hot real estate markets – both Scottsdale and Phoenix. Prices are great, the economy is thriving, and opportunities are endless. To start searching for investment properties in the Arizona real estate market, sign up for Mashvisor.