ARIZONA - Arizona real estate prices are rising, with home prices in Phoenix, Tucson, Chandler, and Gilbert up 11.6% and rents in Tucson up 4.4%, respectively. The 18-year cycle has been in place for 200 years. With the demand for Arizona real estate continuing to increase, the state is poised to experience a second housing boom.
Phoenix home prices are up 11.6% compared to last year
If you're looking to buy a home in Phoenix, you'll be glad to hear that prices have jumped nearly 16% over the past year. This increase is largely due to a shortage of homes on the market, but the market also sees a significant lack of inventory. With rising interest rates, more buyers are entering the real estate market.
According to a recent RE/MAX National Housing Report, Phoenix is leading the U.S. in new listings and home sales. In the month of June, Phoenix recorded the most home sales compared to June last year. Median sales prices reached $460,000 and are expected to rise to $475K by mid-May.
Home prices in Phoenix have been rising steadily in recent years and may lead the way to national recovery. The city's low cost of living, a stable climate, and large and diversified workforce have led to one of the nation's fastest-rising housing markets. As a result, Phoenix's home prices are now back to where they were in 2006, just twenty percent below their previous peaks.
While home sales have slowed down due to the pandemic, demand has remained high. This increased demand has resulted in more renters than ever before, and rents will rise as a result. However, rising interest rates may affect home prices in the future.
Chandler home prices are up 4.4% compared to last year
Chandler's number of homes on the market is nearly three times higher than it was a year ago. But prices are falling more quickly than expected. According to the Cromford Report, a leading market analyst in the Phoenix area, it would take three and a half months to sell the current inventory of homes.
The increase in home values in Chandler, Arizona, is a result of increasing demand for housing, which often results from an increasing population. The population of Chandler, Arizona, increased by 1.6% in one year. However, several factors contributed to the increase in home prices in Chandler.
In July 2022, there were 1,247 active home listings in Chandler, AZ. These homes were selling for a median price of $550,950. The average home in Chandler, AZ, was on the market for 38 days. The median listing price for a one-bedroom property in Chandler, AZ, was $294 per square foot.
Chandler is one of the most popular cities in Arizona, with many parks, art galleries, and restaurants. The city's central location makes accessing major freeways and top technology employers easy.
Rents in Tucson are up 4.4% compared to last year
Despite the recent spike in Tucson rents, they remain low compared to other large cities. Currently, a two-bedroom apartment in Tucson costs $1,383 per month, which is a little higher than the national average of $1,306 a month. But Tucson's rent increase is still lower than the rate in some comparable cities, such as Seattle and Miami, where rents have increased by as much as 27 percent.
Several factors are driving the increase in Tucson rents. First, the city is experiencing a housing shortage. Apartment buildings in Tucson are not as plentiful as they once were. Another factor is the proliferation of short-term rentals in Tucson, which some residents claim is a form of price-gouging. In addition, Arizona state law prohibits landlords from setting a rent limit on a rental unit, so it may be difficult to find a low-rent apartment.
Second, Tucson is home to many high-tech companies. Forbes ranks Tucson 107th in the nation regarding business. It is home to six Fortune 500 companies and several emerging technology companies. The city has a UA Tech Park at The Bridges, which could accommodate over three million square feet of biotechnology, mixed-use, and residential development. Some of the city's top employers include the University of Arizona, Raytheon Missile Systems, U.S. Border Patrol, Wal-Mart Stores, and Davis-Monthan Air Force Base.
The local economy is doing well, despite the soaring price of real estate. According to the Tucson Association of Realtors, the median price of a single-family home in Tucson is $385,000, up 17.9% from last year. The real estate market is a great opportunity for those looking to invest in real estate that is far from major cities.
