Arizona Real Estate Trends to Watch in 2020
Blog, Real Estate
March 16, 2020 |
Over the past decade, America’s real estate market has been growing steadily. So, Arizona’s real estate market growth has been particularly strong. According to Arizona’s Office of Economic Opportunity, employment is expected to grow 2.6% by 2021 due to expansion in construction, health services, and manufacturing. High employment rates and a booming economy creates a market of eager buyers who are looking to settle in Arizona.
According to Zillow, Arizona’s median home price is $268,765. Experts expect home prices to continue rising in 2020 as newcomers purchase homes from the state’s existing inventory. this creates opportunities for growth and development in new areas of the state. If you’re a professional beginning or continuing your career in real estate, Arizona’s major cities provide opportunities to help buyers find their ideal properties.
Arizona’s largest city provides boundless opportunities for property buyers. Phoenix’s strong economy has been drawing new residents from other states as well as other cities in Arizona. Real estate investors can acquire, renovate, and flip properties for new buyers. As rent prices in major metro areas continue to rise, Phoenix residents may transition to homebuying to negate long-term costs. Real estate agents may encourage clients to invest in residential areas like Alhambra, Maryvale Village, and North Mountain Village.
Tucson is home to about 1,000,000 local residents and welcomes many more seasonal visitors during the winter months. Many neighborhoods within Tucson have single-family homes that are ideal for long-term residents hoping to settle down. For those seeking to invest in real estate remotely, homes could be purchased, rehabbed, and marketed as seasonal rentals for visiting snowbirds. Winter tourism provides real estate agents with a constantly changing market of potential customers. Connecting and marketing to seasonal visitors can lead to big sales for real estate agents and the city of Tuscon for years to come.
Scottsdale’s real estate market has been steadily outpacing national markets. According to Mashvisor, Scottsdale’s annual appreciation rate is nearly 4%, with a median home price of $871,000. For those who are interested in purchasing real estate for passive rental income, Mashvisor predicts that Scottsdale investors can expect to see a 1.9% return on investment for rental properties in 2020. Scottsdale homes are a wise long-term investment for those who have the cash on hand to purchase real estate. Arizona’s real estate values in this market are projected to continue increasing. This indicates that real estate agents could benefit from developing long-term ties with Scottsdale homebuyers.
If you’re pursuing a career in real estate, Arizona is one of the nation’s top housing markets. If you’re interested in becoming a licensed real estate agent, check Hondro’s prelicensing courses through the Arizona School of Real Estate and Business and learn why over one million students have chosen Hondros as their online real estate school.