ARIZONA - In the coming years, the real estate market in Phoenix could undergo some drastic changes. Home prices could continue to rise, and the supply of homes could fall to a low. There is no definitive forecast of how the real estate market will look in Phoenix in 2023, but the outlook is generally favorable. A lack of inventory and tight mortgage lending standards are a few reasons for the market's current health.
The city is undergoing a massive wave of redevelopment, with more than five billion dollars invested. Many high-rise developments and mixed-use projects have sprung up, and public transportation has been upgraded. Phoenix is also redeveloping its downtown area to create a more urban, dense core. Rents have been steadily rising in some neighborhoods, with the average rental home now renting for over $2,400 per month.
In the meantime, Arizona wages are not keeping up with rising housing costs, causing some buyers to drop out of the market. Mortgage rates play a large role in home sales, and historically low-interest rates contributed to the recent real estate boom. However, the state's real estate market could suffer with mortgage rates rising recently.
In addition to rising home prices, demand is also driving prices up. The Phoenix housing market is experiencing a shortage of available homes, which has pushed home prices higher. Despite these changes, home prices in Phoenix remain more affordable than most other places in the country. So, the market is poised for another housing boom shortly. It is still a great time to buy real estate in the Phoenix area.
Despite the current housing market, there are still plenty of rental properties in Phoenix, and the Phoenix area is one of the most attractive states for renting out property. This is because Arizona allows landlords to issue unconditional quit notices, and tenants can be evicted for nonpayment within ten days if they lied on the rental application.
The Phoenix housing market will look very different in 2023 than it is today, as there are more available homes. In addition, bidding wars could become a thing of the past. Regardless of the trend, the market in Phoenix will be much more affordable in 2023. A lower cost of living and a stable climate are just a few advantages of moving to Phoenix.
As a result of the COVID pandemic, the U.S. real estate market was flooded with buyers. Remote workers were also a major contributing factor to home sales. The Phoenix housing market saw a large influx of buyers during 2020 and 2021. As a result, Redfin listed Phoenix as one of the pandemic's "pandemic homebuying hotspots."
While the economy continues to grow, unemployment rates have remained low. Arizona has the third-lowest unemployment rate of any state. The population of Arizona is also rising. According to the Weldon Cooper Center for Public Service, the state is expected to add about 820,000 people in the next 30 years.
