The real estate market in Arizona has quickly recovered from the depressed housing prices of 2008. Today, the median home value for a single-family home in Arizona is $391,000, up 31% from the previous year and expected to continue rising yet on a more gradual basis this time. The low point was hit in 2012 when the median home value was closer to $130,000.
That’s a considerable recovery but isn’t considered “bubble” yet more closely aligning with a stable property value picture.
Overall, the Days on Market indicator shows residential real estate being on the market for 75 days, indicating a seller’s market as well. Financing for owner-occupied properties as well as for real estate investments is readily available. The majority of homes for sale are located in the southern half of the state.
Phoenix is the capital of Arizona and leads the way in the number of homes sold as well as being the most populous city in the state. Real estate values in Phoenix increased a healthy 32% year over year to $383,924 and the homeownership rate of 61% matches up nicely with the national average of just under 63%. Nearby Scottsdale reports a median sales price of homes there just under $746,000 and is where much of the higher-end and luxury real estate is located.
Flagstaff is showing a median sales price of just over $567,000 with inventory relatively balanced. 63% of Flagstaff residents own their own home, exactly the same as the national average. Home values have recovered nicely and are very near their pre-2008 levels yet this time around mortgage lending guidelines are more measured and lenders are approving loans with borrowers showing an ability to repay the debt. This is the same throughout the state of Arizona and nationwide as well.
In between Phoenix and Mesa is Tempe where the median home value is $433,850, up by 29% from the previous year and expected to increase another 4.0% over the next 12 months. The homeownership rate is lower compared to other metropolitan areas with 45% of Tempe residents owning their own home with the median rent climbing to $1,850. Rental demand is strong in Tempe due to the low homeownership.
Down in Tucson, real estate values are a bit lower compared to these other metropolitan areas. According to most recent data, the median sales price for a home in Tucson is $291,500, up 29.5% from one year ago and expected to rise by another 5.0% over the next 12 months. With these lower prices, you would expect homeownership rates to be a bit higher than in some other areas and that’s correct. The homeownership rate in Tucson is just over 68%. Tucson never really experienced the housing fallout like other metropolitan areas as the median home values have stayed in a fairly tight range.
Overall, the Arizona real estate market has been very robust. The forecast for Arizona sees a steady increase in home values while financing costs remain near relative lows. Historic low mortgage rates and the availability of many different financing options for first-time buyers and luxury home buyers are helping to stimulate the market. Luxury home buying searching for Jumbo financing options can learn more about all the 80%, 90% and 95% LTV jumbo purchase options here.
Jumbo Mortgage Source is proud to serve home buyers across AZ including Scottsdale, Tuscon, Flagstaff and Phoenix. Call us at 800-962-0677 or just submit the Quick Contact form at the top of this page.