Arizona Housing Market Predictions 2020
With a lot of chatter about when the next housing market crash will hit, it only makes sense for active participants in the real estate market to be looking at predictions for 2020. While a housing market bubble popping would affect the nation as a whole, certain markets could be better prepared. What can we expect from the Arizona housing market next year? Let’s take a look at some key Arizona real estate trends.
Pressure on Arizona Home Prices to Go Higher
Whether you’re a home buyer or a real estate investor, affordability will typically be one of the first things on your mind. So what kind of prices does the Arizona housing market forecast have in store for us? According to the latest Zillow forecast, we’re looking at a hot seller’s market statewide, with the median home value in the Arizona real estate market currently at $254,600. Having already increased by 5.3 percent since last year, Arizona housing market predictions for 2020 point to even more value increase (2.1 percent increase) which will lead to higher prices as well.
Of course, different cities within the Arizona housing market 2020 will experience different price trends. Let’s take a look at the average selling price of some major markets in the state so Arizona real estate investors know what to expect from each area.
Taking a Deeper Look at the Market
The Phoenix real estate market: Phoenix is currently one of the hottest markets in the state, but only expected to go up in value by 0.9 percent in 2020. The average sales price of Phoenix homes that sold over the last month is $265,000. This is 6 percent higher than last year.
The Scottsdale real estate market: Another red hot location in the Arizona housing market, Scottsdale is projected to experience a 1.6 percent increase in home value within the next year. With Scottsdale properties selling at an average price almost double Phoenix, expect to pay around $480,000 for Scottsdale investment properties.
The Economy Will Continue to Thrive
With the US having experienced economic expansion for about a decade now, experts are warning of a possible recession. But it should be noted that news of a recession does not equate to a housing crisis. It just means that after years of growth, the economy could be slowing down. And while a housing crash was the cause of the last recession, the upcoming one will most likely be kicked off by a stock market correction, monetary or trade policy. Even if a recession is on the horizon, experts project the housing sector to remain strong with home values increasing in 2020 and beyond. Zeroing in on the Arizona housing market, how will the Grand Canyon State hold up in light of a recession?
Forbes named Arizona one of the best states for business. It ranked #10 for labor supply and #5 in growth prospects. It’s got some of the best job and economic growth prospects forecasted, not just for 2020, but for the next three years. The main sectors experiencing job growth are construction, health care, manufacturing, and transportation. And as the job market continues to bring more and more people into the state, the Arizona real estate market will also continue to go strong.