Phoenix continues to lead the nation in home price growth - is it a bubble?
Updated: Nov 5, 2020
The word BUBBLE is forever engrained in our brains when it comes to real estate. The United States housing bubble was caused by FALSE demand. We/Arizona specifically had a LOT of empty vacant homes in 2006, declining rents told us what was about to happen.
Rents in the greater Phoenix area have hit an all time high. The rental market is almost more competitive than the homeownership market. First-time renters need to plan 2-3 months ahead of time to move out on their own. Median rent for 1,609SF is $1,795/month whereas the mortgage payment for the same home valued at $315,000 with 10% down would be $1,536/month.
Almost every day we are reading of new land acquisitions, new commercial developments being approved, entire businesses relocating to Arizona and new residential communities the size of cities (Douglas Ranch $10B and home to 300,000 residents) coming to life.
It's definitely feeling a little snug and uncomfortable in the southeast valley especially when we keep seeing our cities being named Safest City in America, Best Place to Become Wealthy, Best Place to Raise a Family and Top city for Young Professionals to name a few.
Upwork Inc, a freelancing platform out of Silicon Valley, released a new 'Remote Workers on the Move" report that identifies between 14-23 million of U.S. households intend to move in many cases out of major cities and into less expensive housing markets. States liked North Carolina, Texas and YES Arizona will see a three to four times the standard rate of in-bound migration as soon as Jan 2021.
As existing home prices continue to rise metro Phoenix, homebuyers are turning their eye to the outer edges of the Valley where more affordable homes are being built.
My Southwest favorite is Lucero at Estrella. Not only are the homes much more affordable, but the community is ideal for raising a family with the top-notch schools, all the outdoor activities, low-crime rate and a small-town community feel.
I'm not going to lie and try to tell you it's ONLY a 30-minute drive outside of the city and that you aren't going to drive through much older areas from the freeway to get to your neighborhood but for the family that is looking to get out of ANY major city, looking for a less expensive housing market with a high quality of life, this is just one of the communities in the outer edges of Phoenix, Arizona that you will love.
At a slightly higher price point but consistently ranking in the top 10 best-selling master-planned communities in the country is Eastmark in Mesa.
With it's HUGE family draw for award-winning schools, innovative amenities, outdoor playgrounds, water parks and being adjacent to what will be the world's largest sports and entertainment facility (Legacy Sports USA), this community has everything a relocating family could ever want. And it really is only 30 minutes from Phoenix Sky Harbor Airport, 10 minutes from Phoenix-Mesa Gateway Airport that does provide some domestic and international flights.
Maricopa County has already been the fastest growing county in the United States for the last 2 years at 1.81%. If you are even THINKING about moving to more remote area outside of town, pick up that phone and give me a call, text or click here to send me your information and I will call you. There has never been a better time BEFORE we see even more migration to the Greater Phoenix area.
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Sheryl Willis, Go Chandler and eXp Realty does not engage in or condone activities which illegally discriminate on the basis of race, color, religion, sex, age, national origin, disability, familial status or any other protected classification under federal or state law.