While it’s true that Arizona was lagging behind some states on the post-recession road to recovery, we’re now back on the top of national lists where people want to live, work and invest. In 2018 the state’s population increased by more than 100,000 and those same numbers – plus a strong economy – are expected this year. The job market also continues to accelerate and experts project an additional 71,000 net jobs this year, with unemployment easing below 4 percent.
These strong statistics continue to make an impact on the Valley real estate market, much to the delight of sellers and builders. Experts anticipate housing prices to climb between four and six percent – a slight decrease from the prior few years. However, market professionals aren’t worried yet. While the increase of home prices is slowing a bit, current data doesn’t indicate an impending crash and this could be good news for buyers.
With this gradual transition from a seller’s position of power to a buyer’s market, it may be great timing for those holding out on real estate decisions. Sellers may wish to consider acting now if we are indeed approaching a peak in this cycle. Inversely, it also may be optimal for buyers to make a move before prices continue to rise, risking a loss on capital appreciation this year.
Investing in Arizona makes sense as well, with factors that include a robust student population, snowbirds and retirees, thriving urban development, as well as low taxes. We’re considered the eighth friendliest tax state in the union.
There are naturally concerns to keep an eye on like interest rate hikes, tariffs and trade wars – both economic and political, plus the complicated immigration factor in Arizona continues to impact the workforce required for all that new construction.
Although the opinions vary among real estate experts, and alas, none of them own a crystal ball, the overall consensus is one of cautious optimism. Even considering the limited housing inventory and rising prices of recent years, the slowing trend doesn’t resemble a bubble that’s in danger of bursting. And that’s good news for Arizona.