Buying or investing in Phoenix real estate has proven to be a great move in the past years. With the real estate appreciation rates increasing year after year and even rising mortgage rates generally believed to not affect it, it’s no surprise that Phoenix is expected to continue being one of the top US real estate markets in 2020! I am happy to share with you the reasons why investing in the ever resilient Phoenix market is a win!
My top 3 reasons to invest in the Phoenix real estate market
The 2020 Phoenix real estate market has definitely soared in the face of a pandemic. This is due to a number of key trends in home value, the local economy, and the rise of Arizona’s capital as a destination for new buyers.
Even in the face of worldwide economic uncertainty, Phoenix homes have continued to see growth in median price (an impressive $302,500!), and has one of the highest appreciation rates at a whopping 17.8. This along with being the fifth largest city in the country with a robustly growing job market has allowed Phoenix to continue being one of the hottest markets around.
In 2019, single-family home purchases grew by roughly 4 percent. These sales make up over 80 percent of the total of all home sales in the area, and there are still currently 3239 available listings on Zillow!
Strong local economy
The combined strength of home prices, cost of living, and the strong local economy also makes owning a house safe: the Zilllow estimated rate of foreclosure in 2020 sits at just 0.4 percent (3 times fewer than the current national average of 1.2 percent). Distressed sales made up less than 1 percent of the entire market in April 2020.
Most importantly, current mortgage rates are at all-time lows: the average rate for a 30-year fixed mortgage is now 3.15 percent! These statistics mean you should strongly consider Phoenix real estate investment. You just have to determine which type of property you want to buy for what purpose.
Investment opportunities could include downtown Phoenix renovations between Seventh Street and Seventh Avenue. There is always a housing need for Arizona State and the other campuses that host over 100,000 renters in the market. Additionally, there is the short-term rental pathway of Airbnb or the ‘Snowbird’ market of retirees who want to tour the clean, allergy-free desert air!
The icing on the cake for these diverse rental opportunities is that Phoenix is extremely landlord-friendly. There are stringent eviction laws that allow landlords to turn over delinquent tenants quickly. With the state income tax beginning at 2.59 percent, and the median property bill of $1,400 Texas or California, Arizona was rated as the 8th most tax-friendly state in the nation!
Phoenix investment properties really do have it all; with a combination of location, landlord friendliness and low-cost entry properties that can be enhanced with accessory dwelling units such as mother-in-law suites, the only thing left to consider is having a sound strategy in place to build out your property and create more profit upside.
Ready to make your investment dreams a reality?
You should always be selective in your opportunities to invest in real estate. Arizona represents a great location to find what you are looking for, and Norada Real Estate Investments can help you achieve your goals. Let me know which markets you consider best for real estate investing, and I will gladly work to make that a reality.