The Phoenix real estate market is one of the top performing markets in the United States. Last year, in fact, Phoenix ranked number one real estate investing market in the US. The retirement benefits, affordable housing, sunny weather, and diversity of the population altogether make living in Phoenix estimable.
What, moreover, has comforted people to choose to invest in Phoenix is the durability of the economy and the real estate market. While Phoenix struggled greatly during the housing collapse, its tenacity to recover fully has paid off in recent years. 2017, particularly, saw an extraordinarily performance in the real estate market and especially in the number of home sales.
How is Phoenix real estate looking in 2018? And what are the best places to invest in property in Phoenix? Today, we explore some housing market trends that will carry out through the year. Home supply, home prices, and the aftermath of the housing collapse will be explored below. Onwards, we provide information about three neighborhoods with the best real estate investments in Phoenix.
Housing Boom and Phoenix Real Estate Today
Phoenix was one of the cities that the housing boom hit the hardest. In 2007, the United States had forgone a boom and a bust in its housing market resulting in a sharp increase in home prices followed by a plummeting drop. During the housing boom, developers built thousands and thousands of housing units that ended up vacant when the balloon burst. As a result, the housing market suffered from evictions, foreclosures, and prolonged unemployment.
With the real estate market crisis beginning in 2007 and extending until 2011, the median home value dropped to as low as $100,000, from $250,000 right before the crisis. More than 40,000 housing units remained unsold. Fortunately, the market experienced a bottoming out in 2013; property prices, home sales, and re-sales slowly began to increase, and ever since the housing market has fully recovered. Prices of Phoenix real estate properties have increased and will continue to do so in 2018, according to Forbes and other real estate experts.
After a prolonged period of boom, bust, and recovery, the Phoenix real estate market has become a top performing market. Hitting rock bottom, recovering, and becoming one of the best markets nationwide is an indicator of the strength and durability of this market. In fact, the Phoenix real estate market rebounded sharply with above-average annual returns for house values. In the past year, house prices rose by 9.5%. This year market analysts have predicted home prices to continue to rise but at a more moderate pace of around 3.5%.
City officials have concluded that Phoenix has a surplus of vacant land that it owned. The excess land covers about 2.3 square miles and is approximately worth $150 million. As the population grows and as houses wear down, the demand for new construction in Phoenix heightens. In fact, recent reforms have been made to mitigate the growing demand for new housing and decrease the amount of land that Phoenix city holds, whether by selling it or transferring the ownership. The overall incentive is to build affordable single-family homes while creating more jobs.
Best Places to Invest in Property in Phoenix Real Estate
As new construction efforts continue to permeate Phoenix, more people are moving into the city to enjoy a desired quality of life. Below we offer some useful information that will enable you to know more about the neighborhoods with the best investment potential in Phoenix.
- Median Home Value: $150,000
- Median Rent: $900/month
Located about nine miles northwest of Downtown Phoenix, Glendale is a quiet neighborhood with access to big city amenities. The area attracts mostly professional athletes as it is home to two major sports venues: University of Phoenix Stadium and Gila River Arena. The neighborhood is also the third most diverse suburb in Arizona with residents coming from all over the nation. Not only is Glendale diverse, but it is also the most affordable as far as housing is concerned. The median home value of $150,000 is much lower than the national average, with about 55% of the population owning their homes. Affordability of housing in Glendale advances the neighborhood over others and enables real estate investors to accumulate appreciation on their properties. Visit Mashvisor today to help you find an investment property in Glendale.
- Median Home Value: $230,000
- Median Rent: $1,100/month
Located southeast of Phoenix, Chandler is known for its prolific parks, such as Veterans Oasis Park and Desert Breeze Park. According to analysts, the Chandler real estate market continues to outperform any other market. Today, it is considered one of the best neighborhoods of Phoenix to settle down in and raise a family. The suburb, moreover, has plenty of new restaurants, bars, and coffee shops, further advancing Chandler in the list of preferred cities to live in. If you are looking to invest in a property that will have value appreciation and one in a family-friendly neighborhood, consider Chandler.
- Median Home Value: $160,000
- Median Rent: $1,300/month
Located in Maricopa County within the city of Phoenix, Laveen enjoys an urban-like atmosphere. Being in close proximity to Phoenix Downtown has contributed to the neighborhood’s overall attractiveness. More people are choosing Laveen because it pulls off a similar vibe of that of Downtown, but only quieter. Houses are also much more affordable than they are in Downtown. The median home value hovers around $160,000. About 69% of the population owns their homes. In 2017, according to Phoenix real estate analysts, Laveen ranked the first most diverse place to live in the Phoenix area. If you are looking to purchase an affordable investment property in a diverse and urban area, consider Laveen.
Whether it is Laveen, Chandler, or Glendale, investing in Phoenix real estate today makes a viable option. Not only are home prices slowly increasing and at a steady rate, but the number of new constructions is also increasing greatly. Not to neglect the fact that Phoenix might also be number one city for real estate investments in 2018. Altogether, investing in the Phoenix real estate market will certainly be a good investment decision in the months to come.
For more information on Phoenix real estate, visit Mashvisor.