The Arizona real estate market shows signs of a rock-solid year, and even a cursory glance at the landscape presents the evidence. Thanks to a robust economic environment, previous concerns about a housing market crash no longer appear relevant.
The Arizona real estate market is exhibiting signs of surprising stability and growth, says Arizona developer Austin VanScoyk: “Thanks to strong and strategic new home construction in the state, both buyers and sellers can find what they’re looking for in Arizona.”
Arizona’s Strong Job Growth Numbers Help
Impressive job growth in sectors that have staying power helps to bolster the reality of a flourishing state economy. Technology, healthcare, and tourism anchor job growth and the state can boast of several Fortune 500 companies, including Avenet Inc., On Semiconductor and Carvana, it further strengthens the economic outlook of the state. In 2023, Arizona’s unemployment rate hit a record low of just 3.4%, and it added over 20,000 new jobs, promising more on the way.
Housing Affordability
“Among the many ingredients we look for when casting an outlook for the housing market is the appeal factor, and Arizona’s got it,” shares VanScoyk.
The state’s affordability is a major draw, with a cost of living ten percent (10%) below the national average. Homebuyers looking for stunning, natural vistas can choose between any major Arizona city in the state, in addition to the lesser-known spots, like Queen Creek, that are up and coming. Affordable housing prices make the state a viable option for every demographic. With an increase in new home listings and a recent uptick in mortgage applications, the Arizona real estate market is attracting the right forces that make Arizona a compelling and affordable place to live.
A Healthy Housing Market
In this robust and growing scene, sellers dominate the market for the moment. The median home sale price in Arizona rose to $434,700 in September 2023, a 4.6% increase year over year. With only two months of supply left, demand is high, and the state remains a seller’s market.
On the buyer’s side, however, increasing demand for houses, new construction, and incentives offered by home builders are expected to create competition in the market. One of the more significant signals to watch for is in the financing realm. Mortgage interest rates are predicted to stabilize in the second half of 2024, which is expected to increase the number of homebuyers.
As a result of sellers dominating and buyers on the rise, home prices are expected to continue to increase. This creates a favorable market for both parties. We’re looking at a tug-of-war scenario where buyers and sellers trade the advantage throughout the year.
Mutual Benefit
The long and the short of it is this: approach with confidence. The Arizona real estate market in 2024 presents a goldmine of interest and opportunity. With a strong economy firmly in hand, a growing job market showing no signs of stopping, and affordable living costs, Arizona is making a name for itself with both buyers and sellers. While the market dynamics may shift, the overall trend points towards continued growth and stability in the housing sector.
Published by: Martin De Juan
