The U.S. housing market has weathered a challenging 2020. Unprecedented events such as a global pandemic and a tumultuous presidential election have fueled a period of economic uncertainty. However, despite these challenges, recent research shows that Arizona’s real estate market will see an 8.2% appreciation in house prices from the beginning of 2021 through September, making it one of the hottest real estate markets in the country. This market forecast isn’t surprising considering that Arizona has a history of exponential growth in property value since Q1 2000.
The predicted growth is catalyzed mainly by low property inventory and low mortgage rates. While buyers are attracted by low mortgage rates, the low inventory forces them to compete with desirable property and locations, which ultimately bolsters the property’s value.
That said, below are some of the most promising real estate markets in Arizona:
Phoenix is Arizona’s most populous city and is considered one of the largest housing markets in the United States and also one of the hottest real estate markets in the U.S. It features a combination of beautiful weather, a booming economy, nightlife, prestigious restaurants, and shopping, which continue to draw people to the metro area.
Short-term rentals, in particular, are thriving thanks to the city’s tourism industry, which brings tourists every year with major events like the Phoenix Film Festival and a vast collection of golf courses. Of course, Phoenix’s short-term rental industry was hit hard by the COVID-19 pandemic. However, the industry has shown resilience with relatively fair returns as investors implement safety measures to curb the spread of the virus and encourage guests to feel safe.
Additionally, Phoenix’s affordability is attracting the growing population of remote workers eyeing homes in the suburbs as opposed to crowded cities. They want affordable homes with office spaces and an appealing, warm climate, all of which can be found in Phoenix.
For decades, Scottsdale’s real estate market has been growing thanks to its high employment rate, good schools, and growing tourism industry. This makes it a desirable area for families and young professionals to settle. As such, investing in condos, apartment complexes, or single-family homes for traditional renting or vacation options is a great way of maximizing returns and capitalizing on one of the hottest real estate markets.
Essentially, the traditional rental is thriving mainly due to the high price to rent ratio, standing at 23 according to recent findings. Therefore, with home prices on the rise, residents will rent out properties rather than buy their own. Even though the mortgage rates are low,…