July 22, 2020|Arizona Phoenix homes, Arizona Real Estate, Buy House, Cash offer for houses, Chandler Realtor, COVID Real Estate, Invell Homes, Investing, Phoenix Rentals, Sell House
Thanks to the Demographics of the Real Estate Market and Cromford Market Index, we can take a look into the past, present and predicted future of Arizona Real Estate. Every month, numbers are being tracked and maps “graphs” are being generated in the housing market. Due to these records, we are able to track the direction of Real Estate. We can predict the best time to buy, the best time to sell, and MORE.
Though you can never truly know 100% what will happen in the future, we can track the demographics of everything from population density and growth, inventory of Housing available, all the way to building permits for the future of Arizona!
Arizona is a “Hot Spot” figuratively and literally speaking. We can see the continuous growth in population and migratory moves to the Phoenix area of Arizona. Graphs from 2005 to 2018 track the top 5 states for high numbers of migration. Those states are as follows, California, Washington, Oregon, Texas, and Illinois. California being the number one place people are moving from to come live in Arizona and Illinois being number 5.
Due to migration causing growth in population, the demand for housing is normal to high. The continuous growth has not stopped or slowed despite the pandemic. The supply for housing on the other hand is 59% below normal due to low inventory counts for available housing. Builders permits for single family homes do not meet the need or demand for housing according to America Association of Government. 12 years ago, Builders were over building, according to graphs and in today’s time we are under building compared to the population growth.
Arizona has Apartment buildings and complexes that will be available come May-August of 2021. Though homes are being built, the product line for the future will be different. The fact is people want a single-family home, though the lots are getting smaller per home. Single family homes will appreciate in value over the next 10 years. Homes in the future are more likely to be multi story homes versus single story, as well as more likely to be multi-family builds. Less homes under 300K are being built, that are single family. Rent prices grow year over year and this is not predicted to slow in the future even though homes and lot sizes are predicted to be smaller.
Buyers are predicting a price reduction, though we will not likely see that here in Arizona. Based on charted statistics, this time next year for rentals and active listings the price will increase by 10% before it drops. We are not at our peak price point until we see a balance, when supply and demand have caught up to each other. The demand for Real Estate is rising as fast as it was falling in April 2020. This is comparable to the graphs from 2005, but we cannot compare the two due the causes being different. The factors and scenarios from each year.
According to Projections for the Future of Arizona, less dense areas plan to be more dense within the next 10+ years. Areas such as Queen Creek, Apache, East Mesa, North Phoenix, Surprise, South West Valley, and parts of Chandler.
Based on the information above if you are looking to Buy the best time would have been 8 years ago, but it is never too late! Today is better than what the future predicts for Arizona’s rapid rising market. If you are looking to sell in Today’s Market, you can sell your house quickly, for decent dollar amount due to low inventory and available housing.
If you have any questions, regarding the processes to buy or sell, contact Invell Homes and they can help connect you to the real estate professional that best fits your needs.
