Tag Archives: Millennials and Real Estate in Phoenix

Phoenix among top housing markets to watch in 2019

2019 Housing Market Outlook In Phoenix, AZ

Phoenix will be one of the top housing markets to watch in 2019, according to a report from real estate website Trulia.

Downtown,Phoenix,Real,Estate,Historic,Homes,Neighborhood,Skyline,homes,eventsThe analysis, released Thursday, highlights the 10 markets poised for growth in the coming year. Phoenix ranks No. 7 on the list, just behind Fresno, California and ahead of Columbia, South Carolina. Colorado Springs, Colorado topped the rankings.

Trulia examined the 100 largest U.S. metropolitan areas, measuring each on five metrics including job growth over the past year, vacancy rates, starter home affordability and percentage of the population under age 35.

The Valley’s strong job growth, 2.9 percent, in the past year, along with starter home affordability and low vacancy rates helped the market attain its spot in the rankings. According to Trulia, residents in Phoenix spend just 33.7 percent of their income on housing, which signals strong starter home affordability in the market. The Valley also has a ratio of 1.3 of inbound vs. outbound searches on Trulia’s website. That means more people are interested in moving to the market than those searching to move away.

Trulia’s report also zeroed in on the hottest neighborhoods in each top market. In the Valley, it’s Agritopia in Gilbert, which saw home values appreciate 14.6 percent year over year. Homes in the neighborhood also saw the average number of days on market drop by 18 days, according to Trulia.

As the local economy has continued to add jobs and grow, the housing market around Phoenix has seen a healthy year in 2018. Several homebuilders have scooped up land for new communities and restarted once-dormant projects to meet demand. A recent housing study found existing home prices climbed nearly 6 percent in October.

Millennial’s are said to be some of the hottest first-time homebuyers in Phoenix.

Growth (Rank) Vacancy Rate (Rank) Share of Income Needed
to Afford Median Priced Starter Home (Rank)		 Ratio of Inbound-to-Outbound Home Searches on Trulia (Rank) Share of Population Under 35 (Rank) Overall Score
1 Colorado Springs, Colo. 3.3% (8) 4.8% (35) 35.4% (63) 1.8 (17) 23.6% (8) 26.2
2 Grand Rapids, Mich. 2.0% (22) 3.7% (16) 23.2% (34) 1.1 (41) 21.7% (30) 28.6
3 Jacksonville, Fla. 2.0% (24) 4.2% (26) 23.4% (35) 2.4 (7) 20.7% (52) 28.8
4 Bakersfield, Calif. 0.6% (56) 6.4% (68) 14.3% (6) 2.3 (8) 23.1% (12) 30.0
5 Austin, Texas 2.5% (14) 3.4% (12) 45.0% (79) 1.1 (47) 24.4% (4) 31.2
6 Fresno, Calif. 1.6% (32) 3.5% (13) 47.1% (81) 1.6 (22) 22.6% (16) 32.8
7 Phoenix, Ariz. 2.9% (9) 4.0% (20) 33.7% (59) 1.3 (32) 20.9% (47) 33.4
8 Columbia, S.C. 0.4% (69) 6.1% (63) 13.7% (5) 2.1 (12) 22.3% (20) 33.8
9 El Paso, Texas 1.0% (51) 5.5% (48) 33.5% (58) 2.4 (6) 23.2% (11) 34.8
10 Oklahoma City, Okla. 2.0% (20) 6.9% (76) 21.1% (27) 1.3 (33) 22.3% (21) 35.4
Note: Rankings from among the 100 largest metros.

Whether you’re looking to buy a single-family home in Phoenix, AZ, a Historic Phoenix home, or, If the condo lifestyle is something you’re considering, or, if it’s all you can afford now, please give me a call for  free, no obligation consultation. I specialize and LOVE working with first-time homebuyers and am am FIRM believer that THERE IS NO SUCH THING AS A STUPID QUESTION. I’ll take all the time with you that you need!

10 Housing Markets to Envy in 2017

DAILY REAL ESTATE NEWS | THURSDAY, DECEMBER 01, 2016

Housing Forecast Chart for 2017The national housing market is largely predicted to moderate in 2017, but a handful of metros are expected to beat expectations. In fact, 10 markets are looking like hot-beds for growth in the new year with Phoenix, Arizona being number one.

Realtor.com®’s research team has flagged markets that will likely see average price gains of 5.8 percent and sales growth of 6.3 percent in 2017. Those gains would exceed next year’s anticipated national growth of 3.9 percent in home prices and 1.9 percent in home sales.

As such, real estate professionals in these 10 markets should expect a booming business in 2017. Realtor.com® notes these are the hottest housing markets to watch in the new year, based on price and sales gains:

1. Phoenix–Mesa–Scottsdale, Ariz.

2. Los Angeles-Long Beach-Anaheim, Calif.

3. Boston-Cambridge-Newton, Mass.-N.H.

4. Sacramento–Roseville–Arden-Arcade, Calif.

5. Riverside-San Bernardino-Ontario, Calif.

6. Jacksonville, Fla.

7. Orlando-Kissimmee-Sanford, Fla.

8. Raleigh, N.C.

9. Tucson, Ariz.

10. Portland-Vancouver-Hillsboro, Ore.-Wash.

Why are expectations so high for these 10 markets? Realtor.com®’s research team notes that strong local economies and population growth are helping to fuel sales. Also, the top 10 housing markets have other commonalities, such as relatively affordable rental prices, low unemployment, and large populations of millennials and baby boomers.

Top Housing Trends for 2017
Next year’s predicted slowing price and sales growth, increasing interest rates and changing buyer demographics are setting the stage for five key housing trends:

  1. Millennials and boomers will dominate the market – Next year, the housing market will be in the middle of two massive demographic waves, millennials and baby boomers – that will power demand for at least the next 10 years. Although increasing interest rates have prompted realtor.com® to lower its prediction of millennial market share to 33 percent of the buyer pool; millennials and baby boomers will still comprise the majority of the market. Baby boomers are expected to make up 30 percent of buyers in 2017 and given they’re less dependent on financing, they are anticipated to be more successful when it comes to closing.
  2. Midwestern cities will continue to be hotbeds for millennials – Midwestern cities are anticipated to continue to beat the national average in millennial purchase market share in 2017 with Madison, Wis.; Columbus, Ohio; Omaha, Neb.; Des Moines, Iowa; and Minneapolis, leading the pack. This year, average millennial market share in these markets is 42 percent, far higher than the U.S. average of 38 percent. With strong affordability in 15 of the 19 largest Midwestern markets, realtor.com® expects this trend to continue in 2017 even as interest rates increase.
  3. Slowing price appreciation – Nationally, home prices are forecast to slow to 3.9 percent growth year over year, from an estimated 4.9 percent in 2016. Of the top 100 largest metros in the country, 26 markets are expected to see price acceleration of 1 percent point or more with Greensboro–High Point, N.C.; Akron, Ohio; and Baltimore–Columbia–Towson, Md., experiencing the largest gains.  Likewise, 46 markets are expected to see a slowdown in price growth of 1 percent or more with Lakeland–Winter Haven, Fla., Durham–Chapel Hill, N.C.; and Jackson, Miss., undergoing the biggest shift to slower price appreciation.
  4. Fewer homes on the market and fast moving markets – Inventory is currently down an average of 11 percent in the top 100 metros in the U.S. The conditions that are limiting home supply are not expected to change in 2017. Median age of inventory is currently 68 days in the top 100 metros, which is 14 percent – or 11 days – faster than U.S. overall.
  5. Western cities will continue to lead the nation in prices and sales – Western metros in the U.S. are forecast to see a price increase of 5.8 percent and sales increase of 4.7 percent, much higher than the U.S. overall. These markets also dominate the ranking of the realtor.com® 2017 top housing markets, making up five of the top 10 markets on the list (Los Angeles, Sacramentoand Riverside, Calif., Tucson, Ariz., and Portland, Ore.) and 11 of the top 25 (Colorado Springs, Colo.; San Diego; Salt Lake City; Provo–Orem, Utah; Seattle. and Oxnard–Thousand Oaks–Ventura, Calif.)