Kelly Clauss, Arizona Real Estate Expert.A recent projection for the Arizona real estate market suggests that home prices may continue to rise steadily through 2022 and into 2023. This forecast cuts across two consecutive years of record-breaking price growth within the local housing market.Home prices continue to increase due to a lack of available properties and high buyer demand. As a result, Arizona’s real estate market experienced a historic price increase last year. According to a real estate data provider, the previous year brought unprecedented price growth to the Arizona housing market.
Real Estate Price Forecast Stretching Into 2023
Over the past two and five years, home values in Arizona have risen by 59% and 97%, respectively, providing an optimistic housing market forecast for the Arizona region until 2023.
A real estate company, Zillow, issues a strong housing market forecast for the Arizona area, extending into 2023. The company predicted that prices may rise more than 20% between now and March 2023.
The crucial takeaway is that economists expect house prices to keep increasing within the Arizona market, through 2022 and into 2023, and this, on the supply side, helps the property sellers.
The apparent unevenness between supply and demand continues to put upward pressure on Arizona home prices. This partially accounts for the bold Arizona real estate market forecast for the coming years.
This prediction of a hike in the prices of real estate homes translates to the need to be even smarter when making purchase decisions in Arizona. Technically, you may need the help of an expert experienced in the Arizona real estate market to help ensure you are making the most informed decisions with your real estate investments. One such expert to consider is Kelly Clauss.
Kelly’s interest in Arizona real estate is driven by her passion for helping people make good decisions and getting the best deals for themselves. And for years, she has leveraged her 17 years of active experience in the Arizona real estate market to help hundreds of people find deals that best suit their needs and preferences.
Consider reaching out to Kelly if you want to buy or sell a home within Chandler, Tempe, Gilbert, Paradise Valley, or Scottsdale in 2023.
Could Higher Mortgage Rates Reduce the Housing Market?
Mortgage rates play an essential role in the Arizona housing market. Over the years, interest rates have remained historically low, contributing to a countrywide increase in home-buying activity. However, rates have increased during the previous several months of this year.
If rates continue to rise, the Arizona real estate market might experience a general cooling trend and become more buyer-friendly later this year and into 2023. However, the persistent supply deficit is projected to “outweigh” this effect, guaranteeing that the Arizona housing market will stay competitive in 2023.
There is also a shedload of uncertainty in the air. From escalating inflation to the conflict in Ukraine, a few elements might affect the economy in the future. Consequently, making reliable projections for the Arizona Real Estate Market or any other in the United States is challenging.
Median Price of a Home in Some Arizona Counties
Arizona’s housing market has above 900,000 renter households. However, a report shows that the rental prices in Arizona have become out of reach for many residents.
For many low-income workers, wages are not at pace with rising rents and home prices; thus, workers need to make $21.10 an hour to afford a 2-bedroom rental at a fair-market rate of $1,097. To afford this rent and utilities – without paying more than 30% of income on housing – a household must earn $3,658 monthly or $45,892 annually.
Assuming a 40-hour workweek, 52 weeks per annum, this income level translates into an hourly Housing Wage of $21.10. The minimum wage in Arizona is $12.00/hr. And the average Renter Wage is $17.46. Cost-burdened is spending above 30% of your monthly income on housing and utilities. Neighborhoods in South Phoenix and West are the most cost-burdened.
In some cases, more than 50% of households pay 30% or more of their income on housing costs, while less than 29% of renting homes are housing cost-burdened in the North.
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Website: https://experiencemattersaz.com/
