Lately we’ve been seeing record-setting temperatures in the Valley and the Valley’s real estate market continues to be just as hot!
With a little more than a two month’s supply of inventory, the average list price hovers around $525,000 while the average sale price is approximately $323,000. This lack of inventory continues to put high pressue on prices. Putting it in layman‘s terms, it’s a sellers market. So, what does this mean if you are a buyer or seller?
First, U.S. home prices are expected to appreciate between 4.5 and 7 percent during 2018. That appreciation rate is happening at twice the speed of inflation. Arizona’s real estate market should easily meet those numbers.
Annual household earnings in Arizona is up 5.2% this year compared to 2.7% nationally. Arizona’s unemployment rate is sitting between 2% and 3% which is an 18 year low. Arizona’s job growth is just under 3% – which is almost double the national rate. People flock to where the jobs are and this is causing more people to move to Arizona. With all of these jobs being created in Arizona, people require either an apartment or a home to live in.
Arizona remains one of the top places to live because home affordability is so great. Maricopa County continues to lead the nation in population growth. It is the fourth most populated county in the nation. Out of the 7 million residents in Arizona, 4.7 million of them live in Maricopa County. As Arizona continues to grow over the next decade, we expect the real estate market to continue to be hot at least through 2020 and then a relative cooling off period for the seven years following 2020. So sellers, if you have been waiting for the “right time” to sell at the peak, we are almost there! Buyers, you may want to hold off until 2020 to find good value in your purchase.
As always, continue to follow our blog for the latest news in Arizona real estate. Please feel free to email any questions to us at dnolle@nolleproperties.com.
Nolle Properties 