As a real estate investor in Arizona, keeping up-to-date with the latest market changes is crucial for success. In this fast-changing market, you need the latest trends and data in order to have profitable investments. For Phoenix real estate investors, there was a lot to news from the top-selling ZIP codes in 2022, and the best cities for downtown living in the state. Whether it is rentals or flips, we cover the important information you need for your next investment in the Phoenix real estate recap for February 2023.
Top 10 ZIP Codes for Home Sales
According to a recent study by Opendoor analyzing MLS data, the top 10 ZIP codes for home sales in 2022 in the Greater Phoenix area are:
- Queen Creek – 85142
- Maricopa – 85138
- Buckeye – 85326
- Sun City – 85351
- Sun City West – 85375
- Casa Grande – 85122
- Peoria – 85383
- Goodyear – 85338
- DC Ranch in Scottsdale – 85255
- Buckeye – 85396
The average number of accepted contracts per week is 2,000, which highlights Phoenix’s robust real estate market.
The Best Cities for Downtown Living
Phoenix ranked as the 10th best city in the nation for downtown living, according to a recent report by StorageCafe. Key features that make downtowns appealing for renters, including the cost of living, rental amenities, access to entertainment and shopping, safety, and more, were considered.
The Top Cities For Downtown Living Were:
1. Dallas, TX
2. Austin, TX
3. Chicago, IL
4. Boston, MA
5. Seattle, WA
6. Nashville, TN
7. Houston, TX
8. Columbus, OH
9. San Diego, CA
10. Phoenix, AZ
Phoenix’s downtown area has added over 70% of its total inventory of apartments in the last decade, with nearly all apartment buildings (92%) providing access to gyms and well over half of the apartments (64%) in the high-end category. Among other enticing perks, downtown Phoenix apartments come with an average of about 790 square feet of space, much more generous than in many other cities’ downtowns.
This ranking indicates that the South is becoming an increasingly popular destination for those who seek a premier downtown living experience.
Upward Trend in Monthly Average $/SF for Closed Listings
The monthly average $/SF for closed listings in Arizona has been on an upward trend since mid-January. The average $/SF for listings under contract refused to drop below $295 and is trying to break through $300 again.
While the trend is weak, it is becoming clearer as the month progresses. This data suggests that real estate prices are likely to continue to rise in the near future.
Firming Pricing Ahead
The Cromford® Market Index in Phoenix is now over 120, which strongly suggests firmer pricing ahead. Fountain Hills is the highest-ranked market right now with Chandler close behind. Currently, 4 cities are in a buyer’s market, with 2 balanced markets and 11 in a seller’s market.
The Central Arizona market continued to improve for sellers over the last month. Top areas include Tempe, Glendale, Avondale, Gilbert, Queen Creek, Goodyear, Phoenix, and Mesa, all locations where the CMI increased by 24% or more. This means that any buyers who are waiting for prices to fall further are probably going to be disappointed.
The average 30-year fixed rate for mortgages in Arizona is already over 6.75%, heading towards 6.875%. Last month saw an average rate of 6.20%, so affordability has deteriorated. Real estate investors should keep this in mind when making investment decisions.
Phoenix Real Estate Recap February 2023 Summary
In conclusion, the Phoenix real estate market remains robust, with the top 10 ZIP codes for home sales in 2022, and the city ranking as the 10th best in the nation for downtown living. However, with the average $/SF for listings under contract refusing to drop, and the average 30-year fixed rate for mortgages increasing, affordability for buyers is dropping. Here is the top news you need to know for real estate investing in Phoenix!
Phoenix Real Estate Recap February 2023:
- Top 10 ZIP Codes for Home Sales in 2022: The top 10 ZIP codes in Arizona based on MLS data were ranked by the total number of homes that went under contract within 90 days of listing in 2022.
- Best Cities for Downtown Living: A new report by StorageCafe ranked Phoenix as the 10th best city in the nation for downtown living. The report examines the key features that make downtowns attractive to renters, such as cost of living, rental amenities, access to entertainment and shopping, and safety.
- Upward Trend in Monthly Average $/SF for Closed Listings: The trend of increasing monthly average $/SF for closed listings since mid-January. While the trend is weak, it is becoming clearer as the month progresses, and it suggests firmer pricing ahead.
- Firmer Pricing Ahead According to the Cromford® Market Index: Many cities in the Cromford® Market Index are becoming seller’s markets again. Could this mean higher pricing ahead in the Phoenix real estate market?
- Deteriorating Affordability Due to Increasing Mortgage Rates: Increasing mortgage rates are affecting affordability in the real estate market. The average 30-year fixed rate is already over 6.75% and heading for 6.875%, which means that buyers waiting for prices to fall further may be disappointed.
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