Today’s Housing Market in Phoenix & the Latest in Estrella
With stunning desert scenery and endless entertainment, restaurants, shopping, and outdoor activities, Arizona offers an ideal living environment for families and individuals on the hunt for their next place to call home. With the Phoenix real estate market’s home sales expected to jump 11.4 percent compared to last year and with the typical listing in the region roughly $100,000 less than other popular city hubs, the Valley’s market is expected to remain a hotspot for sellers and buyers alike.
A number of factors such as beautiful weather, reasonable cost of living, and prestigious education options are just a few reasons why there’s such a high demand to live in the Valley of the sun. With the market consistently evolving, it’s important to understand what’s making Arizona’s housing market so hot. Below are a few trends that will continue to affect the Phoenix real estate market, as well as the Estrella market.
Seller’s Market = Buyer’s Fatigue
Currently, the state is experiencing a supply shortage due to high demand and low inventory — making it a prime market for sellers. According to a recent Phoenix Business Journal article, the pricing of homes between $400,000 and $800,000 has increased 138% since February. Meaning, sellers are able to increase their home’s listing price significantly more than what they likely bought it for just less than a year ago.
What does that mean for buyers? Buyers are finding themselves in situations that lead them to what’s commonly known as Buyer’s Fatigue. Even when they exhaust every option they have, it might not be enough to land the home, however, it’s not expected to last long. Experts are reporting that buyers will begin to see more homes come on the market in the near future, which would force sellers to reconsider their high listing price.
Stable Mortgage Rates
Phoenix mortgage rates are expected to stay near historic lows. Both a 30-year fixed rate and refinancing rates are both averaging just shy of 3% but it’s important to note that these rates are constantly changing. If someone is in the market to buy or refinance a home, it’s recommended to check what the rates are remoting daily, which you can do on a site like Bankrate.
Renting vs Buying
It’s important for homeowners and prospective buyers to be informed about the different ways you can invest in a home and believe it or not, renting can sometimes be the better option given a person’s situation. If someone is looking for a long term investment, homeownership is the best option for them. However, if they’re not in a position to buy a house, given the typical cost to build a house in Arizona today averages around $295,580 according to Forbes, renting could be a suitable short term option.
Today in Estrella
Redfin reports that Goodyear homes are currently selling at an average price of $439,000, a 35% increase compared to last year but in Estrella, the average price of a new home is around $420,000. Redfin’s report also breaks down how competitive the market is, the average timeline from when a home is listed to when it closes, average sale-to-list prices, and more.
Homes are currently being built in Estrella by a variety of builders including Beazer Homes, Landsea Homes, Taylor Morrison, Terrata Homes, The New Home Company, Toll Brothers, and William Ryan Homes. Despite the housing’s market inventory being low, many builders have inventory available in Estrella.
To find a home in Estrella, please visit our Homefinder page.