For the last five years, one of the hottest real estate markets in the country has been Arizona, specifically communities surrounding Phoenix. It seems that there is no stopping, or even slowing the increase of Arizona real estate appreciation. Prices continue to climb steadily upwards, in all housing markets – single family homes, duplexes, condos, and commercial property.
For consecutive years, real estate has appreciated by an average of 10 percent, if not more, in certain highly sought after communities like Phoenix, Scottsdale, Chandler, and Gilbert, Arizona. Some areas have had unprecedented growth; homes increasing in value as much as 25 percent and in some select areas, even 40 to 50 percent.
What keeps Arizona real estate prices in this appreciation track? It’s a simple matter of supply and demand, and Arizona has always had a steady demand for homes that is only continuing to increase. There are several reasons for this:
- Arizona has always been an attractive opportunity for retirees or snow-birds. The many communities in Arizona offer comfortable weather, superb recreational opportunities (like hiking and golfing), welcoming communities, and affordable housing and cost of living expenses. For retirees or those looking for an escape from harsh winter conditions, Arizona continues to be a paradise.
- Arizona has had a very successful business boom. Many high-tech companies have relocated to Arizona, there are a number of excellent educational institutions throughout Arizona, and the presence of successful small business climate continues to grow. Combined with an ever increasing highly trained and capable work force, it’s no wonder businesses find the Arizona climate an environment which fosters growth for their companies.
- Arizona continues to be affordable. Even with the steady increases in real estate appreciation, Arizona still offers affordable real estate opportunities. For many neighboring states, the dream of home ownership has eluded their residents, specifically in states like California. Arizona is attracting steady streams of Californians that are simply priced out of the housing market and are looking for their piece of the American Dream.
Arizona real estate appreciation has had many investors holding their breath – is their an end in sight? As long as the favorable conditions continue to hold, there seems to be no stopping this highly profitable investment opportunity. Arizona continues to be one of the best bets in the nation.
Reg Gustin is a senior loan officer with Sun American Mortgage and specializes in helping families and their financial lending needs.
Click here and get a free copy of The Greater Phoenix Area Housing Appreciation Report, as compiled by Arizona State University with your free subscription to his monthly ezine, Arizona Fun Facts.
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