The Phoenix real estate market is one of the best in the nation in 2022. With its thriving economy, low cost of living, high quality of life, economic opportunities, and cultural attractions, it isn’t hard to see why new residents are flocking to Arizona’s biggest city and state capital.
So, what’s currently happening in Phoenix’s booming real estate market? And how can you capitalize on these trends as a real estate professional? Keep reading to find out.
Median Home Prices on the Rise
Like many markets during the pandemic, Phoenix’s average home prices have continued to soar. The median sales price in the region was $424,000 in November 2021, which is $38,000 more than the median price a year earlier. Prices in Phoenix have increased by an impressive 28.1% year over year.
While the city is currently experiencing growth, some areas are accelerating faster than others. Investors looking for maximum ROI might consider purchasing a property in the Phoenix-Mesa-Scottsdale Metro area. Here, typical property values rose over 32.4% from November 2020 to November 2021, compared to only 14% from 2019 to 2020 and 6.1% from 2018 to 2019. Experts predict prices will rise a further 20.3% in the next 12 months.
If you’re hunting for homes for sale in Phoenix with good flipping possibilities, there’s certainly short-term profit potential. If you can uncover a great deal, this can be a rewarding property investment option. A long-term investment in Phoenix real estate will also generate even higher returns.
Low Supply, Above-Average Demand
The Phoenix real estate market has not only rebounded from the early COVID-19 slump, but demand has reached new highs.
The number of active listings in Phoenix is at an all-time low, however. The existing inventory of properties in the Phoenix housing market would sell in just one month, given the present sales rate. That means inventory is low, while competition remains high. One way to gain an advantage over other buyers is by using PropStream to identify off-market properties with motivated sellers.
Still More Affordable Than Other Large Cities
While prices might be at an all-time high, homebuyers and investors shouldn’t be too disheartened. Compared to other major cities, Phoenix's housing prices are fairly modest. In fact, they’re more than $100,000 below the average home prices in cities such as San Francisco, Los Angeles, Seattle, Portland, and Denver.
For ultimate affordability, consider Central City South, as it’s the most inexpensive neighborhood in Phoenix, with a median list price of $290,000. Alternatively, Sun City is the most affordable city, at a median price of $293,900.
PropStream’s heat map and estimated value features can also identify other areas that are up and coming. This allows you to pinpoint the best opportunities within Phoenix so you can take advantage of this booming market in 2022.