There’s no doubt about it: 2015 has been a great year for those selling and buying homes in the state of Arizona. Phoenix has seen a real estate boom, and the Tucson market has been gradually gaining in strength.
Where Summer Left Us
By the end of the summer, several Phoenix-area suburbs had been ranked by a WalletHub study as among the healthiest real estate markets in the country. Gilbert (No. 11), Chandler (No. 22), Tempe (No. 28), Peoria (No. 35), Scottsdale (No. 36), and Mesa (No. 4) all made the top 50, as did Phoenix proper (No. 46). Tucson also slipped right into the rankings at the No. 49 spots.
These numbers appeared on the tail of reports that Phoenix’s housing market had fewer available listings on the market, with home prices falling on the slightly higher-end, with a median at about $220,000. Meanwhile, Tucson’s real estate market made it through the summer going strong—with median home prices set at around $175,000.
Despite the healthy summer numbers, Tucson’s market dropped off a little bit right at the end of August and going into September. This is probably because most of the college students and their parents who were buying homes in the area had already created a burst of sales that dropped off right when the semester started.
Looking Ahead of Autumn
Despite the drop-off, the Tucson-area market was looking good as of the autumnal equinox. Home prices are at a four-year high, and there are more houses listed than previously.
Sales in Arizona tend to be higher in the late fall, especially as snowbirds scout for places to park their RVs during the snowy months in other parts of the country.
The markets in North Tucson, Oro Valley, the Foothills, and the West Side close to Downtown are all looking particularly strong at this time. The Northeast Side and Sahuarita are also looking pretty good.
The luxury market is good for sellers but best for buyers right now, whereas the market for more affordable homes is undoubtedly a seller’s market. There are plenty of available homes in Pima County, and the competition isn’t as stiff as it is in Mohave (currently the most competitive market in the state) or Maricopa counties.
The Takeaway
A study coming out of the business school at ASU late in the summer stated that the real estate market in Arizona was back to normal, as compared to the post-recession market. With population increases balancing out throughout the state, the market isn’t expected to get any better, but it is good enough that it doesn’t need to get better.
At the same time, the market isn’t expected to fall any time soon. Homes are still as cheap or cheaper than they were in 2008, which is a bonus in the face of inflation.
This is a good time to sell in Arizona, particularly in the Tucson and Phoenix metropolitan areas. And it is also a great time to buy!
