AZ Real Estate 2023
Arizona real estate has become hot again in the past couple of years, and it appears as though the heat may not be going out anytime soon. However, it’s still unclear how long the trend will continue. Several factors can affect the economy in the future. If the economy does start to cool, it could be due to a recession or rising rates, for instance.
The Phoenix housing market has had a great year. Home prices increased by over 20 percent. This is the second straight year home prices exceeded the previous record set in 2006. The average house price in Arizona is now $428,120, and the typical family house is valued at about $700,000.
Goldman Sachs recently darkened its predictions for the Arizona housing market for the coming year. However, analysts believe that price appreciation will continue for the foreseeable future. As the housing market moves forward, the supply of available properties will remain a key factor.
One of the key factors contributing to the high housing price in the state is the lack of available homes for sale. Homes are not selling quickly enough, and the absence of homes to purchase puts downward pressure on the gross contract price of new homes.
The market has also seen a lot of immigration, and new residents are drawn to the area’s low cost of living and cultural attractions. In addition, the presence of colleges and universities significantly impacts rents and housing values in the area.
The Phoenix metro area is one of the fastest growing in the nation. It is predicted to grow by 1,897,585 people between 2020 and 2040. While population growth in other parts of the country is slowing, Arizona’s population is expected to continue to increase in the coming years.
There are many reasons for the market’s growth, but the main reason is that Arizona is becoming an increasingly popular place to live. Among other things, it has a low unemployment rate of 3.3 percent. And the price of housing in the Phoenix metro area has risen by more than 40 percent in the last five years.
Another critical factor is the size of the local economy. According to the University of Virginia’s Weldon Cooper Center for Public Service, the Phoenix-Mesa-Chandler metro area will experience a 26.1% population growth from 2000 to 2040. Meanwhile, the state’s unemployment rate will decrease from 6.8% to 4.1%.
Many experts believe that the most significant driving force behind the Arizona real estate market is the migration patterns of the population. Several tech companies relocated to the state, and several snowbirds flock to the warm desert climate during winter. Other factors contributing to the market include a strong economy and the availability of high-quality rental housing.
These are just a few factors that will determine the market’s direction in the coming years. Prices are expected to increase steadily over the next few years, and the population is also expected to grow. But the economy is expected to remain tumultuous in the early years of the new century.