Affordability, Market Cool Downs, and Home Value. These were the hot topics in August as the market began to shift more towards buyers than sellers. Real estate investors in Arizona are taking notes of top areas to invest, as the market continues to make its shifts for buyers.
We cover the changes you need to know for your next investment. Here is the top Arizona Real estate news you need to know.
Top Arizona Cities For Retention Of Home Value
According to the Cromford Report, the median home price in Phoenix dropped from $480,000 in May to $460,000 in July. As home buyers and investors evaluate which Metro Phoenix neighborhoods are expected to retain their value, The Brokery shared their top picks.
Top Arizona Cities to Maintain Home Value
- Arcadia: Buyers looking for well-maintained homes and a close-knit community continue to choose Arcadia.
- Paradise Valley: Paradise Valley continues to rank among the nation’s most expensive zip codes and more desirable neighborhoods.
- Scottsdale: Scottsdale is also a top pick for those who enjoy the abundant shopping, dining, nightlife and entertainment options of this resort town.
- Gilbert/Chandler/Mesa: The East Valley has become a huge semiconductor hub in the Valley, with massive corporate investments and thousands of new jobs coming to the area. Along with this growth comes a sustained demand for housing, and developers are working hard to keep up.
- Downtown Phoenix: New high-rise buildings, an explosive restaurant scene, arts, culture, and sports entertainment, and the popularity of downtown living should result in continued increases in the area’s home values.
While these locations are more likely to retain their home value, they lack affordability for new buyers. Additionally, while many locations shifted to buyer markets, Fountain Hills, Paradise Valley, Scottsdale, and Cave Creek were ranked as seller’s markets in the Cromford Report.
Arizona’s Most Affordable Cities
According to the National Association of Home Builders (NAHB)/Wells Fargo Housing Opportunity Index, Nationally, the share of homes affordable to families earning the U.S. median income moved down to 42.8% compared to 56.9% in the first quarter, the lowest since the Great Recession.
All of Arizona additionally saw an affordability drop, with only 3 metros having a higher share of affordable homes.
Arizona’s Most Affordable Home Sale Cities
- Sierra Vista-Douglas at 54.2% of homes sold were affordable
- Yuma at 43.3% of homes sold were affordable
- Lake Havasu City-Kingman at 42.9% of homes sold were affordable
Arizona’s Least Affordable Home Sale Cities
- Tucson at 40.6% of homes sold were affordable (was lower than the U.S. for the first time in over a decade)
- Prescott Valley-Prescott had a share of 28.5% of homes sold were affordable
- Flagstaff was at 22.8% of homes sold were affordable
While affordability is lower for most of the nation, the following areas showed as potential hot spots for first-time buyers looking for homes.
5 Affordable Cities For First-time Homebuyers
- Buckeye
- Queen Creek
- Casa Grande
- Coolidge
- Maricopa
Central and Northwest Phoenix still have affordable housing options for many buyers. Homebuyers are paying a bit more to live closer to the city and have a shorter commute to work than many people.
Phoenix #4 In Nation For Year-Over-Year Home Price Growth
Data released today for June 2022 show that home prices continue to increase across the United States. And Phoenix ranks # 4 in the U.S. for the year-over-year home price increase, with a 26.6 % spike in home prices.
The S&P CoreLogic Case-Shiller U.S. National Home Price NSA Index, covering all nine U.S. census divisions, reported an 18.0% annual gain in June, down from 19.9% in the previous month. The 10-City Composite annual increase came in at 17.4%, down from 19.1% in the previous month. The 20-City Composite posted an 18.6% year-over-year gain, down from 20.5% in the previous month.
Tampa, Miami, and Dallas reported the highest year-over-year gains among the 20 cities in June. Tampa led the way with a 35.0% year-over-year price increase, followed by Miami in second with a 33.0% increase, and Dallas in third with a 28.2% increase. Phoenix ranks No. 4 for the home price increase. Only one of the 20 cities reported higher price increases in the year ending June 2022 versus the year ending May 2022.
Here are the Case-Shiller® Home Price Index® numbers for year-over-year changes:
- Tampa +35.0%
- Miami +33.0%
- Dallas +28.2%
- Phoenix +26.6%
- Charlotte +25.5%
- Las Vegas +25.1%
- Atlanta +24.8%
- San Diego +21.6%
- Los Angeles +19.3%
- Denver +19.3%
- Seattle +19.2%
- San Francisco +16.1%
- Boston +14.9%
- Portland +14.7%
- New York +14.6%
- Detroit +13.2%
- Chicago +13.1%
- Cleveland +12.8%
- Washington +10.8%
- Minneapolis +10.4%
Phoenix is in 4th place and far exceeded the national average of 17.6%.
Summary
Affordable homes have never been harder to find, and many investors continue to watch how the market will change. Here are the top reall estate stories from August you need to know.
August 2022 Arizona Real Estate Recap
- Top Arizona Cities For Retention Of Home Value: Arcadia, Paradise Valley, Scottsdale, Gilbert/Chandler/Mesa, Downtown Phoenix
- Arizona’s Most Affordable Cities: Sierra Vista-Douglas, Yuma, Lake Havasu City-Kingman
- Phoenix #4 In Nation For Year-Over-Year Home Price Growth: Phoenix ranks # 4 in the U.S. for the year-over-year home price increase, with a 26.6 % spike in home prices.
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