Phoenix real estate is on the rise given the attractions that lie within the city. In fact, this year Phoenix is predicted to be the number one real estate investing market. Whether it’s the retirement benefits, the affordable housing, or the seemingly shining sun, Phoenix proves to be an estimable and affordable location to settle down in.
While historically in 2007 the country underwent a real estate market crisis, Phoenix real estate yet managed to rebound and smooth out beginning of 2013. In the following passages, we explain the historical economic events undertaking the country and their implications on Phoenix real estate up until today. You will also learn about the attributes that have contributed to the city’s real estate growth and transformation. If you have not yet thought about investing in the Phoenix real estate market today, when you do so in three years time, investments will be much more expensive.
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Housing Boom
Although the Phoenix real estate marked high in over-valued homes some ten years ago, it has transformed into a desirable market for investors today. Given the turbulences that the real estate industry has endured, Phoenix real estate proved to have overcome them today. Let’s take a look at the events. In 2007, the entire country experienced a boom and bust resulting in a sharp rise and then drop in home prices. The housing market suffered significantly facing evictions, foreclosures, and prolonged unemployment.
Right before the market crisis, average home prices amounted to $250,000. With the real estate market crisis beginning in 2007 and extending until 2011, the median property price dropped to as low as $100,000, while more than 40,000 units remained unsold. In 2013, however, the market experienced a bottoming out. As property prices began to increase, so did home sales and re-sales. The average selling price of real estate properties increased significantly along with the number of properties. Re-sales, moreover, increased by 67%, and the number of properties that banks once foreclosed decreased. In 2016, the prices of Phoenix real estate investments increased by 7%. Forbes and other economic speculations further predict a three-year price growth for investment properties. We recommend that you invest in Phoenix real estate today, as prices are expected to grow by 25% in the upcoming years.
Following the effects of the housing boom, attributes explained below have contributed to a more prosperous and economically vibrant city. Let’s go further in depth.
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A Growing Population
In 1950, Phoenix had just entered the ranks of the country’s 100 largest cities. Today, Phoenix is one of the 10 most populous cities in the US, behind New York, Los Angeles, Atlanta, and Houston. In 2016, Phoenix population has amounted to 1.4 million, while that of the greater metropolitan area reached 4.5 million. Given the population growth, the Phoenix real estate market has consequently strengthened. People are demanding more housing units, and city counties are making more house developments and building more home units. Additionally, the investments in retail stores and restaurants have increased in order to meet the growing demand of the populace. Not to neglect the promising future of jobs such as real estate agents, realtors, and real estate lawyers.
Land Is Abundant
Upon running an internal review on the portfolio of city-owned real estate, city officials disclosed that Phoenix has a surplus of vacant land that it owns. The excess land covers about 2.3 square miles and is approximately worth about $150 million. While the city is experiencing a construction boom and as people have been complaining about the physical and health fitness of these lands, efforts have been ramped up to mitigate the situation. Recent reforms have been made to decrease the amount of land that Phoenix city holds, whether by selling it or transferring the ownership. The city has, further, proposed a mix of business and residential development projects. The overall incentive is to build affordable single-family homes while creating more jobs.
To facilitate researching and looking for property listings, city officials launched a website with all of its real estate properties for sale. The website makes it more accessible for real estate investors to easily browse through properties and can be accessed via this link.
Affordability of the Phoenix Real Estate Market
With vacancy rates decreasing and housing prices increasing, Phoenix real estate yet remains to be one of the most affordable markets in the country. Phoenix real estate offers an ideal investment opportunity given the affordable housing that the city provides. The prices of homes remain to be lower than those in neighboring states such as California, Colorado, and Utah. In fact, Phoenix has ranked of the top 10 most affordable cities in the US.
Furthermore, the housing market accommodates people’s economic status, offering affordable to luxurious homes. The vast diversity of property prices has made the city more appealing. In one area, you can find a home within the $175,000 range. While if you decide to buy a more luxurious and higher-end home, you can easily find one in the $1 million-plus range. Such vast diversity in home prices has made the city attractive for all homebuyers and real estate investors. Hence why thousands of people of different ages, professions, and interests decide to move into or invest in Phoenix. It is important to acknowledge that the growth of the job market along with the environmental attributes have also contributed to this housing boom.
For more information about investment properties and their prices, Mashvisor has created listings for many available properties in Phoenix. You can access via this link.
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Job Growth
The job market has contributed significantly to the expansion of the city’s real estate market. Certainly, Phoenix enjoys great growth potential with billions of dollars flocking into new businesses. The city has experienced and continues to experience a strong job growth where jobs are being added at twice the national rate. The increase in the population, furthermore, is directly proportional to the job growth. Because more people are settling down, more homes are bought and more demand for expansion across businesses has become apparent. Mainly, sectors such as health care, retail, and finance continue to experience such growth. Additionally, more entrepreneurs are flowing in as they try to seek out the job opportunities that this market has unfolded. Factories, warehouses, and distribution centers are also expanding. Everyone is taking advantage of this growth, and so should you!
Having heard the attributes that make Phoenix real estate so appealing, would you consider the option to invest? If you are interested, we recommend that you schedule a visit to assess the Phoenix real estate market and find your comfort zone within the city’s counties.