There’s a lot to be excited about in Arizona real estate. Offerpad is native to the Grand Canyon State and we love living in our flagship market area. We know our neighbors and we’re happy to experience the same real estate situation as our local customers. The industry, complexly tied to many external factors like the local and federal economy, can be a real mystery or a great opportunity for all of us. For better or for worse, we are happy to go through it all with our customers and potential sellers and buyers in Arizona.
Here’s a current recap of Arizona’s local real estate market.
Arizona real estate data
Real estate tends to go through a cyclical process where housing grows, matures, declines falls, bottoms, recovers and begins to grow again. According to analytical research from John Burns Real Estate Consulting, the Phoenix area is currently enjoying the growing phase of the housing cycle. In addition, the agency declares Phoenix a low-risk real estate market and Tucson a normal risk for the short-term, as with the bulk of the housing markets right now. Of the 50 largest markets in the country, 16% are considered high risk, 64% normal risk, 18% low risk and just 2% are considered to pose a very low risk to short-term real estate investment while none are currently classified as very high risk.
2018 real estate industry recap
Phoenix homeowners will be happy to note that year-over-year home price appreciation was at 8%, better than the nation’s average of 7%, according to data gathered in June this year. Data from the same month showed that resale listings were well below the spiking markets of Seattle at 61% and San Jose at 78% as Phoenix’s were only 2% up. Here, resale sales were up this year 6% year-over-year, only behind the Charlotte and Houston real estate markets and well above the weighted average of 0%.
Some favorable factors for the real estate market are that sectors in the Phoenix area such as aerospace and the medical and life sciences are producing a number of high-paying jobs; central Arizona continues as one of the most desirable options for retirees and second home buyers – the population of people 60 years and over is expected to grow from about 900,000 currently to over 1,100,000 by next year; attractive tourism options here related to moderate winter temperatures bring vacationers to the Phoenix area; and our strong and expanding transportation infrastructure is adding to quality of life here.
Arizona’s real estate projection
Across the country, in order for housing supply to meet demand, there needs to be an average of 1.375 million housing units made available per year through 2025. With such a positive real estate outlook in the Phoenix area, our local market may continue to grow as a safe place to meet the nation’s housing demands. John Burns forecasts existing home sales will increase through the end of 2018 in Phoenix. The agency projects a 5% year-over-year climb, among the highest outside of Charlotte and Houston’s 7% projected increases. There are a lot of moving parts, but we are excited to see positive things taking place in Phoenix real estate.
Another Arizona market, Tucson
Offerpad is also excited to be opening for service in Tucson on December 3! Native to the Phoenix metro, Offerpad’s availability will expand southward to the Tucson metro area, Arizona’s second-largest populated city. We’re happy to become available to homeowners looking to sell a home in Tucson and bridge the gap for those moving between the two areas. According to John Burns Real Estate Consulting, there are plenty of positive things for Tucson real estate and home sellers and buyers in the area. Solid year-over-year growth in home sales volume and prices are expected for the remainder of this year and next, as a result of expanding job growth. Year-over-year through August, existing home sales have increased by 2.7%, average home value is up 7.6%, and employment has climbed 2.6%. Also, the median household income is projected to steadily rise over the next four years or more.
Offerpad is proud to become the only major ‘iBuyer’ available in the Phoenix-Tucson megapolitan area who is also headquartered in Arizona. Our hassle-free real estate solution allows families and individuals to sell homes easily and search for and buy Offerpad homes simply. And with the Offerpad Home Trade-In Program, we make an all-in-one experience of selling and buying for the most streamlined experience possible. We are happy to help Tucson real estate consumers navigate this process and excited to become available to a wider population of our Arizona neighbors.
Although the real estate process tends to be wrapped up in economic data and statistics that lend insight into quantitative values correlating with real estate advantages and disadvantages, at Offerpad we know that selling and buying a home is more than just a transaction. It’s an emotional life event that families and individuals want to be handled with care. We’re happy to provide this service to consumers in 10 metro areas and help them enjoy this adventure while circumventing the most cumbersome and frustrating parts of traditionally selling and buying a home.