The real estate market in Phoenix, Arizona, has been named as one of the US’ hottest in 2019. The data shows that it will continue to be the hottest real estate market in Arizona for the remainder of 2020 also. According to a December Zillow report, Phoenix is one of the rapid real estate markets in terms of home value growth. The favorable living conditions in Arizona have also comforted real estate investors and buyers to invest in the Arizona real estate market. Even in the current situation, when there is a pandemic going on in the USA, homebuilders do see a silver lining in Arizona.
Problems faced initially
Like the rest of the sectors, the real estate sector was also struck by the outbreak of COVID-19. While homebuilders were expecting a strong selling season during spring before COVID-19 hit, the impact of home-quarantine orders wasn’t as painful as anticipated as they revolved around offering virtual and appointment-only tours. This minimized the direct contact of people and also helped to carry out business.
Better sales figure
The property investors and homebuilders experienced better sales in April compared to those in March. From entry-level to luxury properties, the homebuilders witnessed better April sales when the first stay-at-home orders were enacted and most homebuilders closed their sales offices. One of the luxury home builders was even quoted saying, “We did over $11 million in sales in April. In March, it was about a third of that. March was more tenuous.”
A growing population
In 2019, Forbes named Phoenix as the fastest growing city in the US. Today, it stands as Arizona’s most populous city. Besides, the city’s thriving business environment, employment growth, high-quality standard of living, affordability, and first-rate universities are all factors that will attract more people to Arizona’s capital. Thus, this presents a clear opportunity for real estate investors. With businesses flourishing in the region and population growth, there’s also a spike in demand for rental property. According to recent figures, almost half of the city’s population rent homes making the Phoenix rental market a hot one.
Nature of the market
Phoenix real estate market can be considered a seller’s market, which means there were more buyers than there were ready homes for sale. It also indicates that the market is highly competitive. Ideally, a buyer would wish for a sale rather than asking price ratio that’s closer to 90%. In Phoenix, the sellers have managed to hold good leverage in such negotiations too.
If you are looking to invest in a rental or commercial property in Arizona, get in touch with the expert consultants from Wealth Builders Capital Investments, INC.