Market forecasts provided by Realtor.com indicate Phoenix, Arizona is poised to be the nation’s number one housing market in 2017. Price increases will likely amount to 5.9%, while home sales across the board may increase to just over 7%. This places Phoenix immediately above real estate giants such as Los Angeles (2nd), Boston (3rd), and considerably higher than fellow Arizonan metropolis Tucson, which clocks in at 9th on the Top 10 list.
None of this is to say that growth will be dramatic throughout the year ahead, as the possibility of a rate increase could impact housing markets in ways both predictable and, perhaps, unforeseen. Nevertheless, the outlook as it stands now suggests market growth during the coming year, even if it is slower than what we’ve seen for 2016.
Additional factors to keep in mind include:
1) An anticipated increase in new home sales
2) The prospect of a moderately ascendant economy
3) A slight shift away from attractive coastal cities to their Midwest counterparts whose home markets are financially appealing to first-time buyers.
Though not geographically Midwestern, Phoenix is at the forefront of this shift. The Valley provides young buyers with financially attractive ownership prospects and is home to a thriving economy, civic-minded communities, and excellent school districts.
For these reasons, among others, the Phoenix real estate market has potential to enjoy a positive calendar year. This development is of major significance to interested home buyers, potential sellers, and to the larger Phoenix economy as a whole. According to researchers with Arizona State University, Arizona is “…on track to create about 76,000 new jobs this year…nearly 8,000 more than expected.”
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