There is a reason that the Arizona property market has seen changes in 2023, and people are curious about how the next few years will unfold for this ever-changing real estate market. Numerous information sources, like Zillow and forecasts for the housing market, offer insight into the state of the market and the potential changes. Let’s look at the outlook 2024 for the Arizona housing market in 2024.
What do you feel what the Arizona Housing Market in the Present?
It is no secret that the Arizona real estate market has been a subject that has attracted the attention of both buyers as well as sellers. With home values fluctuating and evolving trends, it’s crucial to keep up-to-date with the state that the housing market is in. In this blog, we’ll look into the trends and data related to the Arizona housing market to give you valuable information.
Arizona Home Values and Trends
Based on data from Zillow, Arizona’s average property value is $423,436. The deal has experienced an increase of 6.1 percent in the last year; this is essential information for anyone contemplating an investment in real estate. Furthermore, houses located in Arizona tend to be waiting for sale in a minimal amount of time and averages about 19 days.
Key Statistics:
Typical Home Values: $423,4361-year Value Change: -6.1%
Median days from waiting: 19 days
Up to September 30th, 2023, the median ratio between sale and list is 0.997, indicating an active real estate market. In addition, 23.1% of sales during August 2023 were higher than the list price, and 51.0 percent fell below the list price, demonstrating the range of pricing available on the market.
Arizona Housing Market Predictions 2024
One of the most critical concerns on the real estate market is whether the prices of homes in Arizona will fall in 2024. The research and forecasts indicate that, despite slight variations, the overall trend is positive. The anticipated increase in the value of homes in important cities such as Phoenix and Tucson indicates a steady and growing market for homes.
Therefore, it is no surprise that this is why the Arizona housing market has its ups and downs; however, it remains robust and appealing to buyers and sellers. Staying up-to-date with the most recent statistics and forecasts is vital to making informed real estate choices in the current market. As always, speaking with local experts on real estate can give you more information on the areas you’re keen on.
It is essential to understand that the Arizona housing market isn’t just about the state but also the various cities and regions. Knowing the trends and forecasts for particular areas is vital to making educated decisions about property.
Phoenix, AZ
Phoenix, one of the largest cities in Arizona, is a significant part of Arizona’s housing market. As of September 30th, 2023, the anticipated value variation of Phoenix was 0.3 percent. The forecast for the future suggests a slight decline by the end of December 2023, with a change of 0.0%. However, the market is anticipated to rebound and increase dramatically by Sept. 2024. This was a value increase of 3.2 percent. This indicates that the market in Phoenix can withstand the test and is likely to grow over the long-term.
Tucson, AZ
Tucson is another city located in Arizona that has its distinctive real estate trends. On September 30th, 2023, the expected price change for Tucson was more significant than that of Phoenix, with a value of 0.4 percent. Forecasts for Tucson have a more positive trend, with an expected increase of 0.6 percent at the end of December 2023 and a rosy 3.2 percent expected change in value in September 2024. The Tucson real estate market is showing steady and resilient expansion.
Lake Havasu City, AZ
Lake Havasu City, located in the western part of Arizona, offers a distinct image of the real estate market. On September 30th, 2023, the city saw one slight decline, resulting in an expected change of -0.1 percent.
However, it is expected to remain in decline with a change of -0.4 percent until December 30th, 2023; however, it is expected to remain stable, with an anticipated value increase of 2.2 percent in September 2024. This means that the real estate market in Lake Havasu City could experience a slight dip but will likely improve in the coming months.
Yuma, AZ
Yuma is located along the frontier with California and California, offering the prospect of a brighter future. On September 30th, 2023, the city experienced an impressive increase in value of 0.5 percent. The trend is predicted to continue, with an even more significant increase of 1 percent at the end of December 2023 and a staggering 4.6 percent expected change in value in September 2024. The real estate market in Yuma is growing, making it an appealing place for homebuyers and investors.
Flagstaff, AZ
Flagstaff is a city famous for its breathtaking natural beauty and outdoor recreational opportunities, and it is a booming real property market. As of September 30th, 2023, the city has experienced an expected change in the value of 0.3 percent. Notably, this upward trend is predicted to continue by bringing in an additional 0.3 percent value change scheduled until the end of December 2023 and a significant 3.5 percent value increase expected in September 2024. This makes Flagstaff an attractive option for investors looking to invest in a growing market.
Sierra Vista, AZ
Sierra Vista, situated near the Mexican border, is another region that has an optimistic outlook for the Arizona housing market. As of September 30th, 2023, the city witnessed a decrease of 0.2 percent. Forecasts for Sierra Vista indicate steady growth in the coming years, with a predicted value increase of 0.4 percent at the close of December 2023 and 2.3 percent in September 2024. This suggests that the real property market is increasing.
Show Low, AZ
Show Low, a city located in the northeastern region of Arizona that is known for its natural beauty and leisure activities, presents a positive real estate outlook. As of September 30th, 2023, the city had only a slight change in value, 0.1 percent. The forecast for the coming year shows an even brighter future with an anticipated value change of 0.1 percent at the end of December 2023, and an impressive 4.3 percent change expected in value through September 2024. This makes Show Low an attractive destination for prospective homeowners and investors.
Payson, AZ
Payson is located in the middle of Arizona and is home to a flourishing actual property market. On September 30th, 2023, the city experienced an impressive value increase of 0.5 percent. The outlook for Payson is also very optimistic, with an anticipated change in value of 0.7 percent before the close of December 2023 and 3.7 percent in September 2024. The real estate market in Payson is clearly in an upward direction.
Nogales, AZ
Nogales, situated on Mexico’s border, Mexico is a thriving real property market. On September 30th, 2023, the city was experiencing an increase of 0.4 percent. Its forecast for Nogales has a steady growth rate with a predicted value to change by 0.7 percent at the end of December 2023 and an impressive 4% anticipated change in value in September 2024. Nogales is an exciting region for real estate investment opportunities.
Safford, AZ
Safford, a city in southeastern Arizona, presents a distinct scenario for the real estate market. On September 30th, 2023, the city was experiencing a value of -0.2 percent. According to Safford’s forecast, the market could see a slight decrease and an expected value increase of -0.4 percent by the closing of December 2023. However, it is anticipated that it will recover and stabilize with a fluctuation of 1.3 percent until September 2024.
More On Arizona’s Housing Market
These forecasts and regional trends illustrate the variety in Arizona’s Arizona property market. Whether you’re considering cities such as Flagstaff, Sierra Vista, Show Low, Payson, Nogales, or Safford, It’s essential to know the local market and speak with local experts to understand each city’s distinct dynamic better.
If mortgage rates continue to follow an upward trend through 2024, potential buyers may return to the market to increase demand. The most important aspect of learning from the lack of housing inventory is that economists predict home prices could continue slowly rising in the AZ housing market through 2024.
On the other hand, this favors home sellers. The bottom line is that the massive imbalance between demand and supply puts upward pressure on AZ property prices. This may be the reason behind the rather bold Arizona market outlook for the next few years. Another reason is the fact that Arizona’s economy Arizona is booming. However, the state is suffering from rising inflation rates and housing prices. In 17 states, it is at a record low.
Arizona has a 4.0 percent unemployment rate in October, a 0% difference from a year ago. The rate of increase in population in Arizona is the fourth-fastest in the nation. Many states experienced a decline in population due to COVID-19, lower birth rates, and migration into neighboring states. Florida, Texas, and Arizona are the three states with the fastest population growth. The years of underbuilding are an essential factor in the lack of inventory.
According to research conducted by the Weldon Cooper Center for Public Service at the University of Virginia, Arizona’s population is expected to grow by 26.1 percent between 2020 and 2040, an increase of 1,897,585 individuals. With the expected number of people to increase, finding a handful of homes on the market is only possible.
It also creates an issue: Arizona wages aren’t in line with the increasing cost of housing. If prices increase and buyers cannot afford to purchase, they leave. The faster prices go higher, the more likely buyers are to quit in case of a stable market. The mortgage rates have an impact on this. In the last couple of years, rates for interest have remained at historically low levels.
This is among the factors that triggered the country-wide rise in home-buying activity. However, rates have risen slightly over the past few months of 2022. The Arizona property market may see a general cooling trend if rates keep rising. However, the ongoing supply shortage is predicted to “outweigh” this effect, meaning the AZ housing market will remain competitive until 2023.
Of course, there’s an abundance of uncertainty hanging in the atmosphere. From rising inflation to the ongoing conflict in Ukraine, several factors could impact the economy soon. This makes it difficult to draw reliable forecasts regarding future developments in the Arizona housing market or every other industry in the United States.
The housing market in Arizona has more than 900,000 renter households, accounting for 36 percent of the total number of families. According to a study by the National Low Income Housing Coalition (NLIHC), the prices of rental homes in Arizona are now difficult to afford for many residents. For many low-income people, the wages haven’t kept up with the rising home prices and rents. The average salary for workers is $21.10 an hour to pay for the cost of a 2-bedroom apartment at a fair market rate.
In Arizona In Arizona, in Arizona, the Fair Market Rent (FMR) for a two-bedroom home is $1,097. In order to afford this level of utilities and rent -but without having to pay greater than 30 percent of their income on housing costs, households must earn a minimum of $3,658 per month or $43,892 per year. Based on a 40-hour workweek 52 weeks a year, this income will translate into an hourly housing wage of $21.10.
The minimum wage in Arizona is $12.00/hr, and the average renter’s salary is $17.46. Cost-burdened means the expenditure of more than a percent of a person’s monthly income on utilities and housing. The neighborhoods in the west and South Phoenix are the most expensive. In some instances, more than 50 percent of households pay 30 percent or more of their earnings on housing expenses, whereas only 29% of rent-paying households are burdened by housing costs in the north.